Question

In an under-developed economy, there is ___________.

• A. relative equality of incomes
• B. high degree of inequality of incomes
• C. no income at all
• D. nothing can be said

Answer 1

Answer: (B)

high degree of inequality of incomes

In an under-developed economy, there is high degree of inequality in incomes. Rich-poor divide gap is wide in the underdeveloped countries because of inequality.Underdeveloped countries can be referred to those countries which are backward economically. Overpopulation, income inequalities and under-employment- all prevails in the underdeveloped economy.