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Tanzania [10]
3 years ago
12

Dependency ratio indicates the economic situation of a country.? explain plzz help!!​

Health
1 answer:
inn [45]3 years ago
5 0

Answer with Explanation:

A country's "dependency ratio" tells <u><em>how many of the population will have to be supported by the workforce.</em></u> These people who rely on those who are working are people <em>under the age of 15</em> and <em>over the age of 64</em>. People under 15 are not expected to work since they're classified to belong to the minor age while those over 64 are also expected not to work due to their retirement age. <u>This is being used to tell who are economically active in the society.</u>

Knowing the number of people who are dependent will affect the amount of tax that the workers have to pay in order to support them. <em>The higher the number of dependents, the higher the tax,</em> and vice-versa. However, this has a limit because it doesn't take into account the other factors such as: <em>early retirement, disabilities, parents who have no work and so on.</em>

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