Question

An increase in the ______ decreases the ______.

• A. per capita income, dependency ratio
• B. dependency ratio, per capita income
• C. aged population, per capita income
• D. infant population, per capita income

Answer 1

The correct option is B dependency ratio, per capita income

An increase in the dependency ratio decreases the per capita income. This is means that the proportion of non-working individuals is greater than that of working individuals. This would lead to a reduction in the per capita income.