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Which characteristic of an underdeveloped economy is a result of deficiency of capital?
  • a)
    High rate of population growth
  • b)
    Technical backwardness
  • c)
    Predominance of agriculture
  • d)
    Unemployment and underemployment
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which characteristic of an underdeveloped economy is a result of defic...
The characteristic of an underdeveloped economy that is a result of deficiency of capital is unemployment and underemployment.Due to a shortage of capital, there is a tendency to invest available capital in labor-intensive consumer goods industries rather than in capital-intensive capital goods industries. This shortage of capital hinders the expansion of industries and the absorption of the entire labor force, leading to widespread unemployment and underemployment. It is important for underdeveloped economies to address the deficiency of capital in order to create more employment opportunities.
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Which characteristic of an underdeveloped economy is a result of deficiency of capital?a)High rate of population growthb)Technical backwardnessc)Predominance of agricultured)Unemployment and underemploymentCorrect answer is option 'D'. Can you explain this answer?
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