Which statement is not correct about a developing economy?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Dominance of agriculture in both the Gross National Product (GNP) and employment
A developing economy is one with low income per head, a large population pressing on its resources and wide inequality. Agriculture employs the largest share of its workers, but because their output per worker is low, agriculture's share of the national product is far smaller than its share of jobs.
Option (1) Dominance of agriculture in both GNP and employment — Correct. This is not true of a developing economy. In India, agriculture provides work to about 45 per cent of workers but only about one-fifth of the national product; services contribute the largest share.
Option (2) Low per capita income — Incorrect. This is a true feature. Low income per person is the main sign of an economy that is still developing.
Option (3) Heavy population pressure — Incorrect. This is a true feature. A fast-growing population presses on land, jobs and savings.
Option (4) Unequal distribution of wealth/assets — Incorrect. This is a true feature. Land and other assets are held by a small section of the people.