Question

In an undeveloped economy, the labour productivity is _________.

• A. considerably low
• B. considerably high
• C. moderate
• D. does not change over a period of time.

Answer 1

Answer: (A)

considerably low

In an undeveloped economy, the labour productivity is considerably low. These countries do not have adequate resources to train their human capital. Due to this the human capital has poor skills, leading to lower productivity. And due to this, they have low income and standard of livings also continues to be low.