Question

In an underdeveloped economy, the level of real income and per capita income is usually __________.

• A. Very low
• B. Medium
• C. Very high
• D. None of these

Answer 1

The correct option is A Very low

In an underdeveloped economy, per capita real income is very low as the majority of the population in these countries are poor. According to the World Bank Report, per capita real income in under-developed economies is just about $350,comparedto$ 8,000 in developed economies. As a result, people in under developed economies, enjoy a very low standard of living. It is very difficult to get the basic necessities of a human being.