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Question : The "demographic dividend" refers to:

 

Option 1: A decrease in the population growth rate

Option 2: The economic benefits resulting from a young and growing population

Option 3: The decline in the working-age population

Option 4: The rise in the dependency ratio


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: The economic benefits resulting from a young and growing population


Solution : The correct answer is (b) The economic benefits resulting from a young and growing population.

The demographic dividend refers to the positive economic effects that can arise from changes in a country's age structure, particularly when there is a large proportion of working-age individuals in the population. It occurs when the proportion of the population in the working-age group (typically between 15 and 64 years) is relatively high compared to the dependent population (children and elderly).

A young and growing population can contribute to the demographic dividend in several ways. First, a larger working-age population means a larger labor force, which can lead to increased productivity and economic output. Second, with fewer dependents to support, individuals and households may have more resources available for savings, investment, and consumption. This can stimulate economic growth and development.

It's important to note that while a young and growing population can provide an opportunity for economic development, realizing the demographic dividend requires appropriate investments in education, healthcare, and employment opportunities to effectively harness the potential of the working-age population.

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