One of the prime reasons why the 'demographic dividend' is considered temporary is______.
Answer & explanation
Correct answer: option 2
A falling dependency ratio can be a source of economic growth and prosperity due to the larger proportion of workers relative to non-workers. This is sometimes refered to as the ‘demographic dividend’, or benefit flowing from the changing age structure. However, this benefit is temporary because the larger pool of working age people will eventually turn into non-working old people.