Which of the following is True is LDCs ?
Correct answer: A. Labor is often underemployed, having a low alternative cost
- A. Labor is often underemployed, having a low alternative cost
- B. It is cheaper to hire labor in LDC because its productivity is relatively higher than in DCs
- C. Adapting existing Western technology to LDC conditions requires little creativity
- D. Labor is usually considered the scarce factor
Explanation
Labour in less developed countries is often underemployed, so its opportunity cost of employment can be low. This does not mean its productivity is necessarily higher than in developed countries, nor that labour is the scarce factor.
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Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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