Developed Economy : Developed economy is that economy in which there is rapid economic development. Level of per capital income and national income is very high in it. Economies of United States of America, Canada, France, Germany, Japan, etc. are kept in the category of developed economy. 

Following are the major characteristics of developed economy:

• High national and per capital income : In developed countries, the level of per capital income and national income is very high and the standard of living of the residents here is very high. According to the 2012 report of World Bank, annual per capital gross domestic product of developed capitalist countries was at an average of 38,745 dollars in the year 2010. 
• High rate of capital formation : With a view to increase the level of production, the economists have always accepted the importance of capital formation. When a large part of national income is saved and reinvested, it is known as capital formation. Rate of capital formation is high in developed nations and the vicious circle of poverty is not present there 
• Importance of industries and non-agricultural occupations : A large part of population in developed economies is engaged in non agricultural occupations such as industries, transportation, communication, banking, insurance, etc. and the contribution of the service sector is more in national income. 
• Developed with technological point of view : Developed economies are capable economies from technological point of view. A large part of national income in these economies is invested in research and technology development. Techniques of production are continuously developed to increase productivity.
• Other characteristics : Apart from the above mentioned features, developed economies also possess the following characteristics.

1. In developed countries, human resource management and use is done in an appropriate manner. 

2. The awareness to provide momentum to the process of economic development is comparatively more in developed countries.