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.

Answer 1

High dependency ratios exist in countries where there are a high number of dependents (people under 15 or over 65) in comparison to non dependents (people aged 15 - 64). In these countries, there would be high welfare spending, not low welfare levels.

Answer 2

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.

Spending resources on the oldest members of society would, in fact, be a demonstration of social welfare in action. It is also the case that those in dependency are not just the oldest members of society, but especially also children. If there are high percentages of children compared to those of wage-earning age, the amount of resources available to spend on social welfare programs will be affected by that.