Explain the types of economies on the basis of development
Answers
Answer:
High GDP: Developed economies register a very high rate of economic growth due to the use of modern technology and efficient use of factors of production and other resources. Service sector and industrial sector are well developed and contributes the most to the GDP in such economies
Answer:
1. High GDP:
Developed economies register a very high rate of economic growth due to the use of modern technology and efficient use of factors of production and other resources. Service sector and industrial sector are well developed and contributes the most to the GDP in such economies.
2. High per Capita Income:
These economies experience high per capita income due to high growth rate and high national income. High per capita income increases the purchasing power of the people which accelerates the productive capacity within the economy. This promotes the standard of living of the people.
3. High Rate of Literacy:
Developed economies allocate huge amount of resources on education and promotion of skills and knowledge. Consequently, literacy rate is very high in these economies.