Question

Which of the following is the feature of developing economy?

• A. Low per capita income
• B. Economic inequalities
• C. Backward technology
• D. All of the above

Answer 1

Answer: (D)

All of the above

1.Low per capita income: In the underdeveloped countries the size of national income is low but population is very high. So per capita income remains low which is the main obstacle in the way of economic development.

2.Unequal Distribution of Wealth: It is an important feature of underdeveloped economy. In these countries society is divided into two classes - rich and poor. The rich class enjoys all the facilities of life while poor class suffers poverty and hunger.

3.Lack of Technology: In the developing countries like India and Pakistan there is a use of low-level technology in various sectors. So the cost of production is very high and rate of production is very low.