An increase in the proportion of workers relative to non-workers in the population is termed as “___________”.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Demographic Dividend
Option (1) Demographic Dividend — Correct. A falling dependency ratio means a larger proportion of workers relative to non-workers, which can be a source of economic growth and prosperity. This benefit flowing from the changing age structure is called the demographic dividend; it is temporary, because the large working-age group will in time become non-working old people.
Option (2) Age structure of the population — Incorrect. The age structure is the proportion of persons in different age groups relative to the total population. It describes the make-up of the population, not the gain from having more workers.
Option (3) Rate of Natural Increase — Incorrect. The rate of natural increase is the difference between the birth rate and the death rate. It measures how fast the population grows, not the balance of workers and non-workers.
Option (4) Dependency Ratio — Incorrect. The dependency ratio is the measure that compares dependents (children and the elderly) with the working-age population. A fall in it brings the dividend, but the ratio itself is the measure, not the benefit named in the question.
NCERT (2025-26): “Common Concepts and Indicators … 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.” |