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If elderly people form 25 percent of a country's population but many continue working, which caution about dependency is appropriate?

Answer and explanation

Correct answer: Age-based elderly dependency may overstate actual economic dependency

An age-based dependency ratio uses an administrative age boundary. It commonly counts people above a selected age as elderly dependants and assumes that working-age people support them. This is useful for comparing populations, but it is not a perfect measure of actual economic dependence. Some people above that boundary continue working, earn income, pay taxes, or support themselves.

Therefore, if many elderly people remain employed, the age-based figure may count more dependants than the economy really has. Actual dependence also depends on health, employment, pensions, savings, family support, and the retirement age. Choice A gives the appropriate caution: the age measure can overstate economic dependency. It does not follow that every older person is dependent or that a 25 percent elderly share makes dependency zero.

Related tags

Elderly DependencyEconomic DependencyOlder WorkersAge StructurePopulation CompositionGeographyClass 12 McqRdgdfgdfg

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