The Old-Age Dependency Ratio (OADR) Is Calculated as __________

question 186

Multiple Choice

The old-age dependency ratio (OADR) is calculated as __________.

• A)the number of people ages 65 years or older, divided by the number of people ages 20 to 64, times 100
• B)the number of people ages 20 to 64 years old, divided by the number of people ages 65 or older, times 100
• C)the number of people ages 55 years or older, multiplied by the number of people ages 18 or older, times 50
• D)the number of people ages 55 years or older, added to the number of people ages 21 or older, times 50

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Definitions:

Tax-shield Approach

A method to reduce taxable income through allowable deductions such as interest expenses, resulting in lower taxes.

Operating Cash Flow

The cash generated from the normal operations of a business, reflecting how well it generates cash to fund its operating expenses and working capital.

Noncash Deductions

Expenses that can reduce taxable income but don't involve an actual outlay of cash during the deducting period, such as depreciation.

Depreciation

Allocation of the cost of a tangible asset over its useful life, representing the decrease in the value of an asset due to use and age.