Outline any five effects of high dependency ratio [20 marks]
Explanation
(i) Excessive pressure on the resources of the working population
(ii) Reduction of saving and Investment
(iii) Low national Income and reduced standard of living
(iv) Shortage of goods and services i.e excess demand
(v) Reduced tax revenue and therefore the possibility of Increased national debt
(vi) Retards economic growth and development (vii) Reduced efficiency and low productivity.
(viii) High level of Imports,
(ix) High taxation
(x) Increased government expenditure
(xi) Low exports
(xii) Increased cost of living
(xii) Increased demand for commodities consumed by the young and the aged