Theory question 103
PopulationOutline 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.