Define ageing population and explain its effects on an economy.
Explanation
(a)Ageing population occurs when there is an increase in the proportion of old people in the population.
(b) Effects of Ageing population on an economy are:
(i) The dependency ratio will be high and the rate of expenditure will increase because old people require food, health services etc.
(ii) The working population will decline consider-ably.
(iii) Investment pattern will change as production of goods to satisfy old people's needs increases.
(iv) Population becomes less mobile geographically and occupationally.
(v) The gross domestic products of the country will fall
(vii) The level of savings will be affected as expenditure increases.