The phenomenon of 'demographic dividend' of a country relates to
- A.a sharp decline in total population
- B.an increase in working age population
- C.a decline in infant mortality rate
- D.an increase in sex ratio
Correct answer
Explanation
The correct answer is B, an increase in working age population. A demographic dividend is the boost to economic growth that a country can get when the share of people of working age, roughly 15 to 64 years, rises above the share of dependants, children and the elderly. It usually follows a fall in birth rates: fewer children are born, the large earlier generations move into the workforce, and for some decades there are more earners for every dependant. If these workers find jobs and are healthy and skilled, savings, investment and output can all rise quickly. India is in such a phase now, which is why skills and employment are central to its plans. Option A is wrong because a shrinking population is not the dividend; the dividend depends on the age structure. Option C is wrong because lower infant mortality is a health gain that may come before the dividend, but it is not the dividend itself. Option D is wrong because sex ratio measures females per thousand males, not the working age share. Exam tip: demographic dividend means a bulge in the 15–64 working age group.
Practice Questions
View allThe Fourteenth Finance Commission assigned different weights to the following parameters for distribution of tax proceeds to the States :
1. Income distance
2. Population
3. Demographic changes
4. Area
Arrange the aforesaid parameters in descending order in terms of their weights.
- A.1-2-3-4
- B.1-2-4-3
- C.1-3-2-4
- D.4-3-2-1
Show answer
Income distance had the highest weight, followed by population, area and demographic change. The Fourteenth Finance Commission, chaired by Y.V.
Read the full explanation →Which one of the following statements for a firm's equilibrium in Perfect Competition is not correct ?
- A.The market price must be greater or equal to average variable cost in the short run.
- B.The market price must be equal to marginal cost.
- C.The market price must be equal to average cost in the long run.
- D.The marginal cost decreases at the equilibrium output.
Show answer
This statement is not correct, because at the equilibrium of a competitive firm marginal cost must be rising. A firm in perfect competition is a price taker, so the price it gets equals its marginal revenue.
Read the full explanation →Plan allocation in agriculture and irrigation as percentage of total plan outlay was highest in :
- A.Seventh Five-Year Plan
- B.Third Five-Year Plan
- C.First Five-Year Plan
- D.Second Five-Year Plan
Show answer
The First Plan (1951 to 1956) gave agriculture, community development and irrigation about a third of its outlay, the highest share in any Indian plan.
Read the full explanation →Which of the following is not included in the Capital Account of the Balance of Payments of a country?
- A.Foreign Direct Investment
- B.Commercial Borrowing
- C.Invisibles
- D.External Assistance
Show answer
Invisibles are part of the current account of the balance of payments, not the capital account. The balance of payments records all of a country's transactions with the rest of the world and has two main parts.
Read the full explanation →Which one among the following was the focus of the Twelfth Five-Year Plan?
- A.Sustainable and Inclusive Growth
- B.Social Justice and Equality
- C.Food, Work and Productivity
- D.Attainment of Self-reliance
Show answer
The Twelfth Five-Year Plan (2012-17) had the theme "Faster, More Inclusive and Sustainable Growth". It continued the inclusive-growth idea of the Eleventh Plan (2007-12), whose theme was "Towards Faster and More Inclusive Growth", and added sustainability as a stated goal.
Read the full explanation →