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If a country has a very low total dependency ratio but very high unemployment, which conclusion is most appropriate?

Answer and explanation

Correct answer: The favorable age structure is not fully translating into economic gains

The total dependency ratio compares dependent age groups, usually children and older people, with the working-age population. A low ratio means that the age structure offers a potentially favorable balance: relatively many people are in the working ages and relatively fewer are dependent. This condition can support a demographic dividend, but it is only an opportunity, not an automatic result.

Very high unemployment shows that many working-age people are not being productively absorbed into the economy. Without jobs, education, skills, health, infrastructure, and effective policies, the potential advantage may remain unused. Unemployment can also create financial and social pressures despite the favorable age structure. Therefore, the best conclusion is B: the age structure is favorable, but it is not fully producing economic gains. A is too certain, while C and D do not follow from a low dependency ratio.

Related tags

Demographic DividendUnemploymentDependency RatioAge StructurePopulation CompositionGeographyClass 12 Mcq

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