Question

Explain the meaning of an underdeveloped economy.

What is an underdeveloped economy?

Answer 1

An underdeveloped economy is characterized by low per capita income, with people generally living in miserable or very low conditions. According to the World Development Report 2021, underdeveloped economies have a per capita income of $1,145 or less. In such economies, agriculture is usually the main occupation, and traditional production methods dominate.