What does the dependency ratio indicate?

The dependency ratio is an important demographic measure that reflects the relationship between the economically active population and those who are considered dependents, which typically includes children and the elderly. This ratio gives insight into the burden that the working-age population may have in supporting those who are not in the labor force, whether due to age or other factors.

The correct choice highlights that the dependency ratio assesses the balance between those who are typically working (the economically active individuals) and those who rely on them for economic support (dependent individuals). A high dependency ratio may suggest greater economic pressure on the active population to support the dependents, which can have implications for social services, economic growth, and policy decisions.

In contrast, the other options do not accurately reflect the definition or purpose of the dependency ratio. The first option focuses solely on the elderly, ignoring children. The third option ties the concept to youth unemployment and elderly care specifically, which are not central to the dependency ratio itself. The fourth option incorrectly frames the ratio as a comparison between children and adults in the workforce rather than as a broader measure that includes the economically active population and dependents as a whole.