economics medium MCQ

The 'Dependency Ratio' is a crucial demographic metric calculated as the ratio of:

  1. The unemployed population to the total employed population
  2. The rural population to the urban population
  3. The non-working age population (under 15 and over 60) to the working-age population (15-59)
  4. The female workforce to the male workforce

Answer: The non-working age population (under 15 and over 60) to the working-age population (15-59)

A lower dependency ratio indicates that there are more productive workers available to support the dependent segments of society (children and the elderly). As a nation transitions through the demographic dividend, the dependency ratio falls, freeing up household savings and government resources that can be redirected from basic sustenance towards long-term capital investments and wealth creation.

Topic Indian Economy - Demographics
Exam Relevance UPSC Prelims, SSC CGL
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