Question

give two reason why the information on the dependency ratio is important to the government of a country program

Answer 1

Answer:

This demographic indicator gives insight into the number of people of non-working age, compared with the number of those of working age. It is also used to understand the relative economic burden of the workforce and has ramifications for taxation.

Answer 2

Explanation:

The dependency ratio is important because it shows the ratio of economically inactive compared to economically active. Economically active will pay much more income tax, corporation tax, and, to a lesser extent, more sales and VAT taxes. ... An increase in the dependency ratio can cause fiscal problems for the government.