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JAMB Economics 1991 Question 43

Question 43

Population

The higher the dependency ratio the

  1. A.larger the proportion of the employed relative to the unemployed
  2. B.smaller the proportion of the active labour force relative to the inactive
  3. C.smaller the number of the non-working age groups relative to the active labour force
  4. D.lower the birth rate
Show the answer and explanation

Answer: B (smaller the proportion of the active labour force relative to the inactive)

Explanation

Dependency ratio = dependants ÷ working-age population; a higher ratio means fewer active workers for each dependant.