Economic Development — Important Questions

Low per capita income, High population growth rate, Dependence on agriculture, Unemployment

Developing economies are characterized by low per capita income, high population growth (2% or more), dependence on agriculture (more than 60% population), and unemployment. However, they have unequal distribution of income, not equal distribution.

Market System

The market system is also known as 'Free Economy' because the government does not interfere in economic activities, and the market operates freely based on competition and profit motives.

Public sector, Private sector

In a mixed economy, both public and private sectors coexist. They work as complementary to each other rather than as competitors, with private ownership in areas like agriculture and trade, while the state owns key industries.

Total income divided by total population

Per capita income is obtained by dividing the total income (national income) of the country by the total population of the country. It represents the average income per person.