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If elderly dependency is rising while child dependency is falling by the same amount, what happens to the total dependency ratio?

Answer and explanation

Correct answer: It may remain approximately stable

Total dependency is based on the combined number of children and older persons relative to the working-age population. If elderly dependency rises by exactly the amount that child dependency falls, the sum of the two dependent groups remains approximately unchanged, assuming the denominator is also stable or the question is comparing equivalent shares. For example, a six-point rise in elderly dependency offset by a six-point fall in child dependency leaves the total unchanged. The composition of dependency still changes: demand for schools may decline while demand for pensions and elder-care services grows. Thus option B is correct.

Related tags

Total DependencyChild DependencyElderly DependencyAgeing TransitionAge StructurePopulation CompositionGeographyClass 12 Mcq

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