Which of the following would invariably happen in a country, when the demographic dividend has begun to operate? 1. The number of illiterate people will decrease. 2. The ratio of very old and very young will decrease for a while. 3. Population growth rate will quickly stabilize. Select the correct answer using the code given below.

Passage

The demographic dividend, which has begun in India and is expected to last another few decades, is a great window of opportunity. The demographic dividend is basically a swelling in the working age population, which conversely means that the relative ratio of very young and very old will, for a while, be on the decline. From the experience of Ireland and China, we know that this can be a source of energy and an engine of economic growth. The demographic dividend tends to raise a nation's savings rate since in any nation, it is the working age population that is the main saver. And since the savings rate is an important driver of growth, this should help elevate our growth rate. However, the benefits of demographic dividend depend on the quality of the working age population. And this implies bringing back the importance of education, acquisition of skills and human capital.

QUESTION

CSAT

Easy

Comprehension

Prelims 2022

Which of the following would invariably happen in a country, when the demographic dividend has begun to operate?

The number of illiterate people will decrease.
The ratio of very old and very young will decrease for a while.
Population growth rate will quickly stabilize.

Select the correct answer using the code given below.

Select an option to attempt

Explanation

Statement 1 is incorrect: While a demographic dividend can potentially lead to economic growth, the passage does not state that literacy rates will automatically improve. This would depend on additional factors like education policy and access to quality schooling. Therefore, statement 1 is not necessarily true.

Statement 2 is correct: The passage defines the demographic dividend as an increase in the working-age population, resulting in a temporary decline in the relative ratio of very young and very old individuals. This means statement 2 is correct because it directly reflects what the passage says: that "the relative ratio of very young and very old will, for a while, be on the decline."

Statement 3 is incorrect: The passage does not mention a quick stabilization of the population growth rate as an outcome of the demographic dividend. Population growth can remain high despite changes in the working-age population ratio, so statement 3 cannot be inferred as an inevitable result.