• Dependency Ratio (Economics Lesson)

    Economics

    Inyang Umoh (tutor)
    26-02-2016 04:23:00 +0000

    Dependency ratio is a very simple concept that we've observed in several previous JAMB economics exams. It is a way to measure the number of people in a society that are of working age versus those that are not. In dependency ratio calculations if you are not within the working age rage, you are assumed to be dependent on them others.

    The dependency ratio is calculated using the following formula:
    (People of working age / People not of working age) * 100

    As an example, imagine that working age is between 15 and 65 years old.

    Lets look at these two societies:

    Country 1:
    Population 10 million
    GDP: 1000
    Number of people between 15 and 65: 3 million
    Number of people 0-14 or 65 and older: 7 million
    Dependency ratio = (3/7)*100 = 43

    Country 2:
    Population 10 million
    GDP: 1000
    Number of people between 15 and 65: 7 million
    Number of people 0-14 or 65 and older: 3 million
    Dependency ratio = (7/3)*100 = 233



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