Correct Option: A. Dependency ratio is high Explanation of the Correct Answer: The dependency ratio is a measure used in economics to assess the ratio of dependents (people who are not in the labor force) to the working-age population (typically those aged 18 to 60). It helps to understand the economic burden on the productive part of the population.

1. Understanding the Components:
2. Dependents: In this context, dependents are individuals who are either below 18 years (children) or above 60 years (elderly). These groups are often not part of the labor force and rely on the working-age population for support.
3. Working-age Population: This is generally considered to be those aged 18 to 60 years.
4. Calculating the Dependency Ratio:
5. In the given scenario, 40% of the population is below 18 years, and 30% is above 60 years. This means that a total of 70% of the population is considered dependents.
6. The working-age population, therefore, constitutes 30% of the total population (100% - 70% = 30%).

The dependency ratio can be calculated using the formula: [ \text{Dependency Ratio} = \frac{\text{Number of Dependents}}{\text{Working-age Population}} \times 100 ] In this case, if we assume a population of 100 for simplicity: - Dependents = 70 (40 from below 18 + 30 from above 60) - Working-age = 30 Plugging in the numbers: [ \text{Dependency Ratio} = \frac{70}{30} \times 100 = 233.33\% ] This high dependency ratio indicates that for every 1 working-age person, there are approximately 2.33 dependents.

1. Implications of a High Dependency Ratio:
2. A high dependency ratio suggests that a smaller proportion of the population is working and contributing to the economy, which can lead to increased economic pressure on the working-age population to support the dependents.
3. This can result in higher taxes, increased social welfare costs, and potential challenges in economic growth.

Explanation of Why Other Options Are Wrong: B. Population is optimum: - The term "optimum population" refers to a situation where the population size is ideal for the available resources, leading to maximum economic output and quality of life. A high dependency ratio typically indicates that the population is not at an optimum level, as there are too many dependents relative to the working-age population. C. Ratio of females to males is high: - The information provided does not include any data regarding the gender distribution of the population. Therefore, we cannot conclude anything about the ratio of females to males based solely on the age distribution provided. D. Population is growing at less than equilibrium: - The term "growing at less than equilibrium" refers to the rate of population growth relative to the economic capacity of the area. The question does not provide any information about birth rates, death rates, or migration patterns, which are necessary to assess population growth. Thus, this option cannot be determined from the given data. Revision Summary:

• The dependency ratio measures the number of dependents relative to the working-age population.
• A high dependency ratio (233.33% in this case) indicates economic pressure on the working-age population.
• The population is not at an optimum level when the dependency ratio is high.
• Gender ratios and population growth rates cannot be inferred from age distribution alone.