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 KCSE business studies paper 2 revision questions and answers set 5

Explain five characteristics of under development as witnessed in under developed countries.

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Answer Text:
-High level of poverty: under developed countries have great part of their population living under poverty level.
-Unequal income distribution:Under development is characterized with unequal
distribution of income such that small part of the population is wealthy with the rest being poor
-Low level of savings and poverty. The little income earned is used in basics therefore no savings and investment
-High population growth rate. Underdeveloped countries hava high growth
rate and high dependency ratio
-Problem of unemployment
.Underdeveloped countries experiences a problem where many of their people are not employed
-Underdeveloped countries are more dependant on developed countries.


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