Chapter 19, Problem 4AA

To determine

To Fill: The correct term in the given blank:

Answer to Problem 4AA

Subsequent

Explanation of Solution

Under the developing countries, many people couldn’t fulfill their basic needs because these countries lack proper resources. Resources that fully satisfy people’s needs couldn’t get utilized, as under this there is a low circular flow of income which leads to underdevelopment of resources.

As the resources are scarce it leads to an increase in the level of unemployment rate because there is a lack of industrialization, which helps in economic growth. As a low level of industrialization results in higher unemployment, thus people suffer through earning and unable to meet their desired resources.