What is "demographic dividend"?

The correct answer is Option (4) → It happens with an increase in the proportion of workers relative to non-workers in the population.

The demographic dividend is a potential for accelerated economic growth that arises from a change in a country's population age structure. It occurs when a nation's working-age population (typically defined as those aged 15-64) is significantly larger than the non-working-age population (children and the elderly).

This favorable shift in the age pyramid means:

• More people are in the workforce: There is a larger labor force available to produce goods and services.

• Fewer dependents need support: With a smaller proportion of children and elderly, households have more disposable income to save and invest.