Why is falling de

Dependency ratio is an age-population ratio of those typically not in labor force.

As the ratio increases, there may be an increased burden on the productive part of the population to maintain the upbringing and pensions of the economically dependent resulting in increased financial expenditures. A high dependency ratio can cause serious problems for the country.

A falling dependency ratio could allow for better pensions and better health care for residents. Therefore a falling dependency ratio is the source of economic growth and prosperity.

OR

There are three basic phases of population growth.

1. The first stage is that of low population growth. It occurs in a society that is underdeveloped and technologically backward.

2. The second stage is the transitional stage. It is a movement from backward to a modern and advanced stage characterized by very high rates of growth of population.

3. This is the last stage which is also one of low growth in a developed society where both birth rate and death rate have been reduced and the difference between them is negligible.