(Last Word) the Inverse Dependency Ratio Is Predicted to Fall

question 155

Multiple Choice

(Last Word) The inverse dependency ratio is predicted to fall to about 1.16 by 2050.What is the most likely effect of this decline?

• A)It will likely cause worker productivity to decline.
• B)The Social Security system will be on stronger financial footing.
• C)Innovation will increase significantly as dependents take advantage of their otherwise idle time.
• D)Living standards will fall if productivity gains don't sufficiently offset the decline in the ratio.

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Definitions:

Specific Period

A specific period in accounting refers to a set time frame for which financial statements are prepared or to which particular financial transactions or events pertain.

Retained Earnings

The accumulated portion of net income that a company elects to keep, rather than distribute to shareholders as dividends.

Future Use

Refers to resources or assets that are intended to be utilized in upcoming periods, not immediately.

Payments

Monetary transactions involving the transfer of funds to fulfill a debt or obligation.