A falling dependency ratio can be the source of:
(A) prosperity
(B) economic growth
(C) cause of worry
(D) burden
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) and (B) only
(A) prosperity Correct. The dependency ratio compares the dependents (children below 15 and people above 64) with the working-age group. When it falls, there are more workers relative to non-workers, and a falling dependency ratio can be a source of prosperity.
(B) economic growth Correct. For the same reason a larger share of workers can produce more and support fewer dependents, so a falling dependency ratio can be a source of economic growth, the ‘demographic dividend’.
(C) cause of worry Incorrect. It is a rising dependency ratio that is a cause for worry, in countries facing an ageing population, where fewer workers must provide for more dependents.
(D) burden Incorrect. The burden falls on the working-age people when the ratio rises and they must provide for a relatively larger number of dependents; a falling ratio lightens that burden.
NCERT (2025-26): “2.1 Some Theories and Concepts in Demography … The dependency ratio is a measure comparing the portion of a population which is composed of dependents (i.e., elderly people who are too old to work, and children who are too young to work) with the portion that is in the working age group, generally defined as 15 to 64 years. The dependency ratio is equal to the population below 15 or above 64, divided by population in the 15-64 age group. This is usually expressed as a percentage. A rising dependency ratio is a cause for worry in countries that are facing an ageing population, since it becomes difficult for a relatively smaller proportion of working-age people to carry the burden of providing for a relatively larger proportion of dependents. On the other hand, 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.” |