Question

In an under-developed economy, General Income Levels and Real Income (Purchasing Power) are ___________.

• A. low
• B. high
• C. moderate
• D. nothing can be said

Answer 1

The correct option is A low

In an under-developed economy, General Income Levels and Real Income (Purchasing Power) are low. In underdeveloped countries employment opportunities are low and hence income generation is also very poor.Underdeveloped countries can be referred to those countries which are backward economically. Overpopulation, income inequalities and under-employment- all prevails in the underdeveloped economy.