CUET Preparation Today
Which of the following is incorrect in the context of dependency ratio? |
The dependency ratio is a measure comparing the portion of a population which is composed of dependents with the portion that is in the working age group. Working age group means persons in the age group of 15 to 49 years A falling dependency ratio can be a source of economic growth and prosperity None of the above |
Working age group means persons in the age group of 15 to 49 years |
The correct answer is Option 2: Working age group means persons in the age group of 15 to 49 years Option 1: The dependency ratio is a measure comparing the portion of a population which is composed of dependents with the portion that is in the working age group. Correct. This is the basic definition of the dependency ratio. It helps assess the burden placed on the working-age population by those who are generally not economically active. Option 2: Working age group means persons in the age group of 15 to 49 years. Incorrect. This statement confuses the working-age group with the child-bearing age group. The working-age population is generally taken as 15–64 years, whereas 15–49 years is used in the context of fertility rates. Option 3: A falling dependency ratio can be a source of economic growth and prosperity. Correct. When the proportion of workers increases relative to dependents, the economy may benefit from higher productivity, savings, and economic growth. This is often referred to as the demographic dividend. NCERT: The dependency ratio is a measure comparing the portion of a population which is composed of dependents (i.e., elderly people who are too old to work, and children who are too young to work) with the portion that is in the working age group, generally defined as 15 to 64 years. The dependency ratio is equal to the population below 15 or above 64, divided by population in the 15-64 age group. This is usually expressed as a percentage. A rising dependency ratio is a cause for worry in countries that are facing an ageing population, since it becomes difficult for a relatively smaller proportion of working-age people to carry the burden of providing for a relatively larger proportion of dependents. On the other hand, a falling dependency ratio can be a source of economic growth and prosperity due to the larger proportion of workers relative to non-workers. This is sometimes refered to as the ‘demographic dividend’, or benefit flowing from the changing age structure. However, this benefit is temporary because the larger pool of working age people will eventually turn into non-working old people |
