Question:
In an economy, the dependency ratio is the ratio of
In an economy, the dependency ratio is the ratio of
Updated On: Aug 21, 2025
- non-working age group population to the working age group population
- number of children to adults in the total population
- the number of unemployed to employed workers in the total labour force
- total foreign aids and grants to the total (net) factor income from abroad
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The Correct Option is A
Solution and Explanation
The dependency ratio is a key economic indicator used to evaluate the proportion of people who are not in the labor force (non-working age group) compared to those who are (working age group). It provides insights into the economic burden on productive members of the economy as they are responsible for supporting the dependent population, which includes individuals who are typically younger than age 15 or older than age 64. A higher dependency ratio implies a higher relative number of dependents for each working-age adult, meaning that fewer workers must support a larger number of dependents.
| Description | Group |
|---|---|
| Non-working Age Group | Individuals below 15 and above 64 years |
| Working Age Group | Individuals aged 15 to 64 years |
The correct definition of the dependency ratio, as it pertains to the context of an economy, is the ratio of the non-working age group population to the working age group population. This ratio is crucial for understanding demographic pressures and assessing economic support structures.
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