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 falling dependency ratio means that the proportion of dependents (children aged 0–14 and elderly aged 65+) is declining relative to the working-age population (15–64 years). This situation is often referred to as a demographic dividend. It can lead to:
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(A) Prosperity – Because a larger working population can contribute more to the economy.
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(B) Economic growth – With more people working and producing, national income can rise.
On the other hand:
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(C) Cause of worry and (D) Burden are not accurate as they usually relate to a rising dependency ratio, which increases the economic burden on the working population.