The correct answer is Countries in which per capita real income is low.![image](//cdn. Points

• An underdeveloped economy is characterized by low per capita real income, indicating limited economic resources and poor living standards.

• Such economies typically exhibit high levels of unemployment and underemployment, with a large portion of the labor force engaged in subsistence agriculture or informal sectors.

• A significant proportion of the population in underdeveloped economies lives below the poverty line, showcasing widespread poverty and inequality.

• Underdeveloped economies often face challenges such as low industrialization, inadequate infrastructure, and weak financial systems that hinder economic growth.

• These countries generally have low savings and investment rates, which further restrict capital formation and development.![image](//cdn. Information**

• Balanced per capita real income refers to economies where income distribution is relatively equitable, and the economic growth supports a decent standard of living for the majority of the population.

• High per capita real income is a hallmark of developed economies, where individuals enjoy high standards of living, robust infrastructure, and advanced technology.

• Mass poverty is a defining feature of underdeveloped economies, where a majority of the population struggles to meet basic needs such as food, shelter, and healthcare.