Question

A falling dependency ratio can be a source of economic growth and prosperity. State how. 

Hint:

Always remember the connection between economic and demographic factors, and try to see the impact of a changing population on a country's development.

Answer 1

A declining dependency ratio, characterized by a greater proportion of working-age individuals compared to dependents (young and elderly), can stimulate economic growth and prosperity.
This occurs because it expands the labor force, increasing the number of individuals available to work and contribute to the economy.
An augmented working population can lead to increased tax revenues, which can then be allocated to funding social welfare programs and infrastructure development.
Furthermore, a larger workforce generally results in higher savings and investment rates, further bolstering economic expansion and prosperity.