Question

14. Which of the following is a feature
of an Underdeveloped Economy?
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Answer 1

Explanation:

Lack of Capital Formation:

Lack of Capital Formation:Developing or underdeveloped countries of the world are suffering from poor rate of capital formation. As the level of per capita income in these countries is very low thus their volume and rate of savings are also very poor.

Answer 2

Answer:However, there is a set of common characteristics of underdeveloped economies such as low per capita income, low levels of living, high rate of population growth, illiteracy, technical backwardness, capital deficiency, dependence on backward agriculture, high level of unemployment, unfavourable institutions and so on. It is on the basis of these characteristics that we draw a line of distinction between developed and underdeveloped economies.

Explanation: