Which characteristic is typical of developing economies?

Prepare for the HSC Economics Exam with comprehensive study materials, including flashcards and multiple choice questions. Each question offers hints and detailed explanations to boost your confidence and help you ace your exam!

Developing economies are often characterized by agricultural-based economies with poor infrastructure. This means that a significant portion of their economic activity relies on agriculture, which might not be as technologically advanced or productive as that in developed economies. As a result, these economies frequently struggle with inadequate infrastructure, such as poor transportation networks, limited access to clean water and sanitation, and insufficient energy supply. This lack of infrastructure can hinder economic growth and development, as it affects the efficiency with which resources are utilized and limits access to markets for agricultural products.

In contrast, high educational attainment, strong industrial sectors, and high levels of foreign investment are more characteristic of developed economies. These features signify a higher level of development, including better access to education, robust industrial growth that moves economies away from reliance on agriculture, and significant foreign investment, which generally occurs in more stable and developed markets.

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