Question

As of 2021, India houses 140 billionaires, while over 86 million people live in extreme poverty, i.e., they earn less than $2 or ₹148 per day. Which of the following features of a developing economy does the situation denote?

• A. High population growth rate
• B. Dependence on agriculture
• C. Unequal distribution of income
• D. Low per capita income

Answer 1

The correct option is C Unequal distribution of income

Unequal distribution of income is one of the features of a developing economy. It tends to create a situation in which the rich become richer and the poor become poorer. For example, in India, the richest 20% of the population share 40% of the national income, whereas the poorest 20% of the population share 10% of the national income.