Question

An underdeveloped economy is characterised by which of the following?

• A. High per capita real income
• B. Large proportion of labor force in the tertiary sector
• C. State of deprivation of large proportion of population
• D. All the above

Answer 1

The correct option is C State of deprivation of large proportion of population

An underdeveloped economy is characterised by state of deprivation of large proportion of population. Apart from that, other characteristics of an underdeveloped economy are low per capita income, a higher proportion of labour force involved in primary sector activities.