Question

Poverty is a vicious cycle with one thing leading to another. All of these keep a nation underdeveloped. Which of the following is not a part of this cycle?

• A. Unemployment
• B. Subsidised goods
• C. Low income
• D. Capital deficiency

Answer 1

The correct option is B Subsidised goods

Underdevelopment is a state of low levels of development characterised by low income, unemployment, and capital deficiency. Underdevelopment follows a vicious cycle of low income, low savings, low investment, low productivity, unemployment, and lower income growth.