Question

An underdeveloped economy is characterized by ____.

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

Answer 1

Answer: (C)

State of deprivation of large proportion of population

The term underdevelopment refers to that state of an economy where levels of living of masses are extremely low due to very low levels of per capita income resulting from low levels of productivity and high growth rates of population. State of deprivation of large portion of people is seen in such economy.