Question

Which of the following is not a reason why a high dependency rate leads to low levels of social welfare?
A.
Resources are disproportionately spent on the oldest members of society.
B.
Dependents contribute little to the national economy.
C.
Dependents contribute little to the tax base.
D.
The average age of the national population is too low to support economic and social growth.

Please select the best answer from the choices provided.

A
B
C
D

Answer 1

D

Explanation: A high dependency ratio reduces welfare because dependents consume resources and contribute little to production or taxes (A, B, C). Statement D is incorrect: a low average age (many young people) is not inherently unable to support growth and can become an economic advantage once those young people enter the workforce.