Q.

Poverty in less developed countries is largely due to -

A. voluntary idleness
B. income inequality
C. lack of cultural activities
D. lack of intelligence of the people
Answer» B. income inequality
Explanation: Despite the developing countries' impressive aggregate growth of the past 25 years, its benefits have only reached the poor to a very limited degree. Not only have the poorest countries grown relatively slowly, but growth processes are such that within most developing countries, the incomes of the poor increase much less than the average. Much of the poverty is due to severe inequality which in turn is due to lop- sided development. Income inequality is the major determinant of poverty both in developed and non-developed countries. Rising unemployment is a major source of spreading poverty.
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