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If a country's old-age dependency ratio is 30 but half of those aged 65 and above are employed, which statement is most appropriate?

Answer and explanation

Correct answer: Traditional old-age dependency may overstate actual economic dependence

The old-age dependency ratio is calculated from age groups, not from each person's actual employment or income. A value of 30 generally means that there are 30 people above the selected old-age threshold for every 100 people in the conventional working-age group. It treats them as potential dependents for a broad demographic comparison.

However, if half of those aged 65 and above are employed, many may earn income and contribute to household or national production. Their real economic dependence can therefore be lower than the age-based measure suggests. Option A is correct. The ratio does not become zero, not every older person is fully dependent, and employment status clearly has economic relevance.

Related tags

Old-Age DependencyElderly EmploymentEconomic DependencyAge IndicatorsAge StructurePopulation CompositionGeographyClass 12 Mcq

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