Asked by Joshua Gagen on Jul 30, 2024
Verified
The "vicious circle of poverty" for developing nations can best be described by
A) low levels of international trade that reduce exports and increase the dependence on imports.
B) low incomes that inhibit saving and the accumulation of real and human capital, making it difficult to increase productivity and income.
C) a large government sector, which reduces the availability of private investment spending but increases macroeconomic stability.
D) a lack of entrepreneurial talent that limits the formation of businesses and the development of private businesses.
Vicious Circle
A complex chain of negative events that reinforce each other, often leading to a deteriorating situation.
Poverty
The state of being extremely poor, where individuals lack the financial resources to meet basic living needs such as food, clothing, and shelter.
Capital Accumulation
The growth in wealth or assets of an entity or nation through investment, savings, or reinvestment of profits.
- Gain insight into the strategies for disrupting the continuous loop of poverty in developing economies, primarily through the accumulation of capital.
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Learning Objectives
- Gain insight into the strategies for disrupting the continuous loop of poverty in developing economies, primarily through the accumulation of capital.
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