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 falling dependency ratio, which means a larger working-age population relative to young and elderly dependents, can be a source of economic growth and prosperity.
This is because it will create a larger pool of individuals who are capable of working and contributing towards the economy.
With a larger working population, there is more potential for higher tax revenues which can help in funding welfare schemes and investment in infrastructure.
A larger working population also leads to greater savings and investment, which also contributes to economic growth and prosperity.