Q-4) The dependency ratio of a country is of great importance to economics and government planners.
Answers
Answer:
Importance of the Dependency Ratio
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.
The economically inactive under 16 and over 65 also tend to be bigger recipients of government spending e.g. education, pensions and healthcare.
An increase in the dependency ratio can cause fiscal problems for the government. For example, Italy already has a national debt of over 100%, a doubling of the dependency ratio is going to cause difficult choices for government to make.
Dependency Ratio in the US

Graph showing forecast inverse dependency ratio in the US
Note: This shows the ratio of workers to the population. Usually, population dependency ratios show the number of dependents to the population. As the number of workers to population declines, the classic dependency ratio rises.
This US method is basically inverting the picture. WIth more old people, the ratio
Answer:
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.