Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Which is NOT a feature of production in underdeveloped countries?

Options:

Wage labour is seldom used

Production is not solely for the market

Significant rise in capital stock over time

None of the above

Correct Answer:

Significant rise in capital stock over time

Explanation:

The correct answer is : Significant rise in capital stock over time

Underdeveloped countries typically struggle with low levels of investment and capital accumulation, resulting in little to no significant rise in capital stock over time. This lack of capital accumulation is a key factor contributing to their underdevelopment.

Here’s why the other options are typical features of production in underdeveloped countries:

  • Wage labour is seldom used: In many underdeveloped countries, production often relies heavily on family labor or self-employment rather than hired wage labor.

  • Production is not solely for the market: Production in underdeveloped countries is often geared towards subsistence, with goods produced primarily for the consumption of the producer's family rather than for sale in the market.