What characterizes developing economies? Check all that apply. A. a growing industrial economy B. a low level of reliance on natural resources C. a drop in the standard of living D. a focus on agricultural activity E. a shrinking middle class
The Correct Answer and Explanation is:
Correct answers: A. a growing industrial economy and D. a focus on agricultural activity
Explanation:
Developing economies, also known as emerging or less-developed economies, are characterized by specific structural and social features that distinguish them from developed nations. These features often reflect the ongoing transition from primarily agricultural societies to more industrialized and diversified economies.
A. A growing industrial economy – Correct: Many developing economies are in the process of expanding their industrial sectors. This shift is typically part of broader economic development efforts, aiming to reduce reliance on agriculture and increase manufacturing and services. As industries grow, they create more jobs, enhance infrastructure, and attract foreign investment.
B. A low level of reliance on natural resources – Incorrect: Developing economies often rely heavily on natural resources for income, exports, and employment. Examples include oil in Nigeria, minerals in the Democratic Republic of Congo, or agriculture in Ethiopia. Their economies are frequently vulnerable to fluctuations in global commodity prices.
C. A drop in the standard of living – Incorrect: While developing economies may have lower standards of living compared to developed ones, this is not always declining. In fact, many are experiencing gradual improvements in life expectancy, literacy, and income as development progresses.
D. A focus on agricultural activity – Correct: Agriculture tends to play a central role in developing economies. A large portion of the population is often engaged in farming, either for subsistence or for export. However, over time, development usually leads to a shift away from agriculture toward industrial and service sectors.
E. A shrinking middle class – Incorrect: In developing economies, the middle class is often growing, not shrinking. As economies grow and diversify, more people move out of poverty and enter the middle-income group, gaining better access to education, healthcare, and consumer goods.
Thus, the correct answers are A and D.
