Wednesday, July 23, 2014

Cambridge GCE O LEVEL past question from economics 2281



Q. why dose dependency ratio is increasing?
             The following are the reason for raising dependency ratio.
Ø Unemployment: Unemployed trying hard to find their livelihood. Unemployed people are depending either employed or government to meet their expenses. So unemployment is one of the reasons for increasing dependency ratio.
Ø Ageing population and children: It was believed that the age group below14 and above 65are unproductive .These group of population depending others to meet their expenses. In developing countries because of high standard of living life expectancy is more, so old dependent population is more in developing countries.
Ø War and terrorism: Another reason for increasing dependency ratio is the frequent wars and terrorism. These problems are keeping the industries away from some countries. Recent situation in Iraq and Afghanistan is making lot of dependent population.

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