What does a high dependency ratio indicate about a population?

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A high dependency ratio indicates that a relatively large portion of the population is composed of individuals who are not in the workforce, such as children and the elderly, compared to those who are of working age. This situation often implies that there are more dependents requiring support from the economically active population.

When a significant number of people are dependents, it can lead to higher economic stress on the working population, as they are tasked with supporting a larger group of individuals who do not contribute directly to the economy through their labor. This can impact economic growth, savings rates, and the provision of services, as more resources must be allocated to support the dependent population.

In contrast, the other options inaccurately depict the implications of a high dependency ratio by emphasizing either a singular aspect of the population (like a large elderly population), an equilibrium state (balanced birth and death rates), or an economically robust situation (more workers). A high dependency ratio fundamentally means that there is a strain on resources due to a higher number of dependents compared to those who can work.

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