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In a State the share of the working-age population is rising and the dependency ratio is falling, but the economy is generating very few pr…

2652Hard UPSC Principal Vice Principal 0 replies 1 views
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In a State the share of the working-age population is rising and the dependency ratio is falling, but the economy is generating very few productive jobs. Which one of the following is the most likely outcome?

  • AThe State will automatically realise a full demographic dividend
  • BThe dependency ratio will begin to rise because of falling fertility
  • CThe potential demographic dividend may turn into a burden through unemployment and under-employment
  • DPer capita income will rise irrespective of employment generation
Correct answer: C

Explanation

A demographic dividend is realised only if the larger workforce is productively absorbed. Without jobs, the potential gain becomes unemployment and social stress.

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