WAEC Economics 2008 Theory question 103

Theory question 103

Population

Outline any five effects of high dependency ratio.

Show the model answer
Model answer

Any five: heavy burden on the working population; low savings and investment; low standard of living; high government spending on education, health and welfare; reduced labour supply and output; low per capita income; pressure on social amenities; slow economic growth; higher taxes on workers.

Explanation

Dependency ratio is the number of dependants (young and old) for each worker.