Economic Impact of Demographic Change on India

Description: This quiz aims to assess your understanding of the economic impact of demographic change on India. The questions cover various aspects, including the changing age structure, labor force participation, dependency ratio, and their implications for economic growth, productivity, and social welfare.
Number of Questions: 15
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Tags: indian economics economic impact of demographic change age structure labor force participation dependency ratio economic growth productivity social welfare
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What is the term used to describe the proportion of the population that is of working age (15-64 years)?

  1. Age Dependency Ratio

  2. Labor Force Participation Rate

  3. Working-Age Population

  4. Youth Dependency Ratio


Correct Option: C
Explanation:

The working-age population refers to the segment of the population that is typically considered to be of working age, typically ranging from 15 to 64 years old.

How does a declining fertility rate affect the age structure of a population?

  1. It leads to a younger population.

  2. It leads to an older population.

  3. It has no impact on the age structure.

  4. It leads to a more balanced age structure.


Correct Option: B
Explanation:

A declining fertility rate means that fewer children are being born, which leads to a decrease in the proportion of young people in the population and an increase in the proportion of older people.

What is the term used to describe the ratio of the non-working age population (0-14 years and 65+ years) to the working age population (15-64 years)?

  1. Age Dependency Ratio

  2. Labor Force Participation Rate

  3. Working-Age Population

  4. Youth Dependency Ratio


Correct Option: A
Explanation:

The age dependency ratio is a measure of the proportion of the population that is not of working age and is dependent on the working-age population for support.

How does an increasing labor force participation rate affect economic growth?

  1. It leads to slower economic growth.

  2. It leads to faster economic growth.

  3. It has no impact on economic growth.

  4. It leads to more balanced economic growth.


Correct Option: B
Explanation:

An increasing labor force participation rate means that more people are working or actively seeking work, which contributes to a larger and more productive workforce, leading to faster economic growth.

What is the term used to describe the ratio of the working-age population to the non-working age population?

  1. Age Dependency Ratio

  2. Labor Force Participation Rate

  3. Working-Age Population

  4. Youth Dependency Ratio


Correct Option: D
Explanation:

The youth dependency ratio is a measure of the proportion of the population that is of working age relative to the proportion that is not of working age.

How does a rising dependency ratio affect the government's ability to provide social welfare programs?

  1. It makes it easier to provide social welfare programs.

  2. It makes it more difficult to provide social welfare programs.

  3. It has no impact on the government's ability to provide social welfare programs.

  4. It leads to more efficient provision of social welfare programs.


Correct Option: B
Explanation:

A rising dependency ratio means that there are more people who are not working and relying on government support, which can strain the government's resources and make it more difficult to provide social welfare programs.

What is the term used to describe the phenomenon where a large proportion of the population is of retirement age?

  1. Aging Population

  2. Graying Population

  3. Silver Tsunami

  4. Demographic Shift


Correct Option: A
Explanation:

An aging population refers to a situation where a significant portion of the population is 65 years of age or older.

How does an aging population affect the demand for healthcare services?

  1. It leads to a decrease in demand for healthcare services.

  2. It leads to an increase in demand for healthcare services.

  3. It has no impact on the demand for healthcare services.

  4. It leads to more efficient use of healthcare services.


Correct Option: B
Explanation:

As people age, they are more likely to experience health problems and require healthcare services, leading to an increase in demand for these services.

What is the term used to describe the phenomenon where a large proportion of the population is of working age?

  1. Aging Population

  2. Graying Population

  3. Silver Tsunami

  4. Demographic Dividend


Correct Option: D
Explanation:

A demographic dividend refers to a situation where a large proportion of the population is of working age, creating a favorable condition for economic growth.

How does a demographic dividend affect economic growth?

  1. It leads to slower economic growth.

  2. It leads to faster economic growth.

  3. It has no impact on economic growth.

  4. It leads to more balanced economic growth.


Correct Option: B
Explanation:

A demographic dividend can lead to faster economic growth due to the increased availability of labor and the potential for higher productivity.

What is the term used to describe the phenomenon where a large proportion of the population is of school age?

  1. Aging Population

  2. Graying Population

  3. Silver Tsunami

  4. Youth Bulge


Correct Option: D
Explanation:

A youth bulge refers to a situation where a large proportion of the population is of school age, typically between the ages of 15 and 24.

How does a youth bulge affect the demand for education services?

  1. It leads to a decrease in demand for education services.

  2. It leads to an increase in demand for education services.

  3. It has no impact on the demand for education services.

  4. It leads to more efficient use of education services.


Correct Option: B
Explanation:

As the proportion of young people in the population increases, there is a corresponding increase in the demand for education services, such as schools, colleges, and universities.

What is the term used to describe the phenomenon where a large proportion of the population is of childbearing age?

  1. Aging Population

  2. Graying Population

  3. Silver Tsunami

  4. Fertility Surge


Correct Option: D
Explanation:

A fertility surge refers to a situation where there is a rapid increase in the birth rate, leading to a larger proportion of the population being of childbearing age.

How does a fertility surge affect the demand for goods and services related to children?

  1. It leads to a decrease in demand for goods and services related to children.

  2. It leads to an increase in demand for goods and services related to children.

  3. It has no impact on the demand for goods and services related to children.

  4. It leads to more efficient use of goods and services related to children.


Correct Option: B
Explanation:

As the proportion of children in the population increases, there is a corresponding increase in the demand for goods and services related to children, such as toys, clothing, and education.

What is the term used to describe the phenomenon where a large proportion of the population is of retirement age and a small proportion is of working age?

  1. Aging Population

  2. Graying Population

  3. Silver Tsunami

  4. Demographic Inversion


Correct Option: D
Explanation:

Demographic inversion refers to a situation where the proportion of the population that is of retirement age exceeds the proportion that is of working age.

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