Economics 9708 · AS & A Level · 11.4

11.4 — practice question

Which of the following statements best describes developing economies?

  • AA dependence on primary products for export revenues means that developing countries are reliant on the industrialised world for their economic performance.
  • BHigh levels of capital per head mean that they must rely on overseas trade if they are to achieve higher growth rates.
  • CHigh real GDP per head, plus high rates of population growth, reduce their ability to increase their standard of living.
  • DMigration of labour from rural to urban areas is of significance only if it results in labour shortages in the rural economy.

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