In demographic studies, what is a key indicator of economic viability?

The dependency ratio is a crucial indicator of economic viability because it measures the ratio of dependents—people typically classified as too young or too old to work—to the working-age population. A lower dependency ratio suggests that a larger proportion of the population is in the workforce, contributing to economic productivity and growth. This balance indicates that there are more people producing goods and services compared to those who are reliant on them, thereby fostering economic sustainability and lessening the financial burden on the working population.

In contrast, options like the average age of the population might provide insights into demographic changes but do not directly reflect economic activity or viability. Similarly, the childhood mortality rate can indicate health standards and quality of life, but it does not specifically address the workforce's effectiveness in supporting the economy. The size of urban areas can signal economic activity but is not as directly correlated to the workforce's capacity to sustain economic viability as the dependency ratio is. Thus, by assessing how many individuals are economically active compared to those who are not, the dependency ratio serves as a pivotal indicator of a society's economic health and potential for growth.