Question

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

Hint:

A falling dependency ratio is seen as a positive thing for an economy, provided that enough jobs are created.

Answer 1

A declining dependency ratio signifies a greater share of the working-age population, enhancing economic contribution.
A larger working demographic expands the income-generating base and increases tax revenue for the government via direct and indirect means.
Consequently, an elevated working-age population can stimulate productivity, leading to augmented savings, investment, and consumption, all beneficial for economic growth.