Which factor contributes to a lower dependency ratio?

Which factor contributes to a lower dependency ratio?

• A. An increase in birth rates
• B. A larger proportion of working-age individuals
• C. More individuals over 65 years
• D. A decline in overall population

Answer: (B)

A lower dependency ratio indicates that there are fewer dependents (people not in the workforce, typically the young and the elderly) compared to those who are working. The presence of a larger proportion of working-age individuals directly contributes to this reduction in the dependency ratio. When more individuals fall into the working-age category, the reliance on the non-working population decreases, thereby enhancing the economic productivity of the society. In contrast, an increase in birth rates or more individuals over 65 would raise the number of dependents, leading to a higher dependency ratio. A decline in the overall population may also not affect the ratio favorably, as it might not necessarily imply an increase in the working-age population relative to dependents. Hence, the option highlighting a larger working-age demographic is the key determinant for achieving a lower dependency ratio.

A lower dependency ratio indicates that there are fewer dependents (people not in the workforce, typically the young and the elderly) compared to those who are working. The presence of a larger proportion of working-age individuals directly contributes to this reduction in the dependency ratio. When more individuals fall into the working-age category, the reliance on the non-working population decreases, thereby enhancing the economic productivity of the society.

In contrast, an increase in birth rates or more individuals over 65 would raise the number of dependents, leading to a higher dependency ratio. A decline in the overall population may also not affect the ratio favorably, as it might not necessarily imply an increase in the working-age population relative to dependents. Hence, the option highlighting a larger working-age demographic is the key determinant for achieving a lower dependency ratio.