Question

An underdeveloped economy is characterized by _________.
A. State of deprivation of large proportion of population
B. Large proportion of labor force in the tertiary sector
C. Both a and b
D. None of these

Answer 1

Hint: Underdeveloped countries are the state which fails to provide a basic standard of living to the large fraction of the country's population. Thus, this results in misery and material deprivation in the nation. India's unemployment is due to a capital shortage.

Complete answer:
Underdeveloped countries face many problems such as deprivation of a large proportion of the population and low per capita income, and it is the state when a country has a low level of development which is characterized as a lower level of literacy, low real per capita income, widespread poverty and underutilization of resources, etc.,
The underdeveloped nation has low levels of infrastructure in the sectors of education, transport, and health care. The economy of the country becomes depressed and experiences a deep recession, which is characterized by the fall of output and the rise in unemployment in the country. But, there is a difference between the recession and the depression of the economy.

The reasons for low development in India are the pressure of population, corruption in public offices, the inefficiency of the public sector, and a high ratio of non-development expenditure, etc.

Hence, the correct answer is option (A)

Note: 1.The indicators of the underdeveloped country are the high birth rates, undernourishment, high infant mortality, undernourishment, low per capita GDP, high levels of illiteracy, and low life expectancy rate.
2.The prevalence of underemployment and chronic unemployment is that It is very difficult to provide the entire planet with profitable jobs.