What is it better for a country to have a lower dependency ratio???
Answers
Dependency ratio is an age-population ratio in economics, demography, geography and sociology. It is a ratio of those typically not in the labour force and those typically in the labour force. Or the dependent part ages 0 to 14 and 65 plus, and the productive part ages 15 to 64. The dependency ratio is used to measure the pressure on productive population.
A high ratio indicates that there is more financial stress between working people and dependents. A high ratio can slow the economic growth. An intermediate dependency ratio shows that there are sufficient number of people in the working class who can support the dependent population.
Low dependency ratio shows that there are more people in the working class than the dependents. If the dependency ratio is low people can get better pensions and better health care. So it is good for a country to have a low dependency ratio.
Answer:
A high ratio indicates that there ismore financial stress between working people and dependents. A high ratiocan slow the economic growth. ... If the dependency ratio is low people can get better pensions and betterhealth care. So it is good for a country to have a low dependency ratio.