Rapid population growth leads to age dependency which refers to:
A) a reduction in the amount of capital per worker, which lowers the productivity of labor.
B) shifts in government expenditures from the country's infrastructure to education and health care.
C) a large number of dependent children whose consumption requirements lower the ability of the economy to save.
D) high mortality rates of middle-aged workers that reduces the average amount of investment spending.
E) survival of the elderly who are dependent on government welfare support.

Question

Quizplus · Accepted Answer

Rapid population growth leads to a large number of dependent children who are not contributing to the economy but consuming resources. As a result, the ability of the economy to save decreases, which ultimately leads to a reduction in investment spending. This results in a cycle of stagnant economic growth, lower productivity, and fewer opportunities for the younger generation. Age dependency, therefore, refers to the ratio of dependent individuals such as children and the elderly to the working-age population.

Rapid Population Growth Leads to Age Dependency Which Refers To