The Vicious-Circle-Of-Poverty Hypothesis States That Poor Countries

question 51

Multiple Choice

The vicious-circle-of-poverty hypothesis states that poor countries

• A) are unable to save and invest enough to accumulate capital stock that would help them grow.
• B) cannot develop because they lack the ability to educate their workers.
• C) cannot develop because their economic policies are ineffective.
• D) cannot develop because people don't consume due to lack of goods and services.

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Definitions:

World Price

The international market price of a good or service, determined through the global supply and demand forces.

World Demand

The total demand for goods and services from all countries around the globe.

World Supply

The total amount of a particular good or service that is available to consumers globally.

World Price

The global market price of a commodity, determined by supply and demand factors across all participating countries.