UGC NET Questions (Paper – 1)

Demographic dividend refers to the economic advantage that can arise when a country has a relatively large working age population and a smaller dependent population. Under favourable policy conditions,this age structure can boost productivity,savings and investment. The concept emphasises that population change can create a window of opportunity for faster growth. Therefore the term demographic dividend matches the description in the question.

Option A:
Demographic transition describes the shift from high birth and death rates to low birth and death rates over time. While demographic dividend can occur during part of this transition,the two terms are not identical. Demographic transition is a broader process,not specifically the economic opportunity mentioned in the stem.

Option B:
Population explosion refers to a very rapid increase in population without reference to age structure or economic benefits. It usually has negative connotations related to resource pressure. Hence it does not capture the growth potential associated with a favourable age structure.

Option C:
Urbanisation means the increasing proportion of people living in urban areas. Though it influences economic development,it is not defined by the balance between working age and dependent populations. Therefore it is not the correct term here.

Option D:
Demographic dividend specifically highlights the economic potential when the working age group dominates. It is this favourable dependency ratio,combined with appropriate policies,that can accelerate growth. This makes it the precise concept referred to in the question.

Demographic dividend refers to the economic opportunity that arises when a country’s working-age population is large relative to the dependent population (children and elderly). If accompanied by investments in health, education and jobs, this age structure can boost productivity and growth.

Option A:
Option A is incorrect because a rising share of elderly people usually increases dependency and fiscal pressure rather than creating a dividend.

Option B:
Option B is incorrect since a sudden rise in births initially increases child dependency and delays any potential dividend.

Option C:
Option C is correct as it links the concept to economic growth potential created by a favourable age structure, provided appropriate policies are in place.

Option D:
Option D is incorrect because child welfare alone is not enough; without employment and human capital for the growing youth cohort, the dividend may never materialise.