ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Low employment rate
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High GDP
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High technology
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None of the above
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Detailed explanation-1: -An underdeveloped economy is characterised by state of deprivation of large proportion of population. Apart from that, other characteristics of an underdeveloped economy are low per capita income, a higher proportion of labour force involved in primary sector activities.
Detailed explanation-2: -Unemployment is caused by various reasons that come from both the demand side, or employer, and the supply side, or the worker. Demand-side reductions may be caused by high interest rates, global recession, and financial crisis. From the supply side, frictional unemployment and structural employment play a great role.
Detailed explanation-3: -Inadequate technology & capital. Low saving rates. Dual economy. Varying dependence on international trade. Rapid population growth (1.6% to DCs’ 0.1% yearly) Low literacy & school enrollment rates. Unskilled labor force. Poorly developed institutions.