Question

Which of the following is a correct statement about an undeveloped economy?

• A. Such economies have low participation in foreign trade, social life is advanced, people are generally of advanced and modern outlook and they always make changes in their socio-economic relations.
• B. Such economies have high participation in foreign trade.
• C. People in such economies always make changes in their socio-economic relations.
• D. Such economies have low participation in foreign trade, their social life is traditional, people are generally orthodox in nature and they seldom make any changes in their socio-economic relations.

Answer 1

The correct option is D Such economies have low participation in foreign trade, their social life is traditional, people are generally orthodox in nature and they seldom make any changes in their socio-economic relations.

Underdeveloped economies have low participation in foreign trade, their social life is traditional, people are generally orthodox in nature and they seldom make any changes in their socio-economic relations. Due to these factors these countries use the traditional methods of operation and do not have the adequate resources and skills to employ modern methods. The employment levels and thus the national income remains low of these countries.