Question

A country has an annual income per capita of $2,300. The country’s nominal economic growth rate is 1.5% while 37.7% of its population lives below the poverty line, and its literacy rate is 48% of the population. In addition, 54% of its labor force is in agriculture and 11% works in the business or the technology sectors. Based on the details of this country's economic growth, how would you classify this country?

Answer 1

Answer: Less - Developed Country

Explanation:

Less - Developed Countries (LDCs) are countries that are usually classified as 3rd world countries. They are characterised by low annual income.per capita and living standards as well as high poverty rates.

Their main industry is usually Agriculture and there are low literacy rates plaguing the country.

The Country described above is a less developed country. It has an annual income per capita of $2,300 which is quite small when compared with that of a Developed country like Liechtenstein with $165,000 annual income per capita.

Most of it's population engage in Agriculture as shown by the 54% ascribed to Agriculture and it has a literacy rate of 48% which is quite low.

All these as well as the 37.7% statistic showing how many people are in poverty confirms that this a Less Developed Country.