The "Vicious Circle of Poverty" for Developing Nations Can Best

question 169

Multiple Choice

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.

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Definitions:

Persuasive Precedents

Legal decisions from other jurisdictions or lower courts that may influence a court’s decision, though not binding.

Doctrine of Stability

A legal principle that aims to maintain long-term contracts or agreements to ensure reliability and predictability in business or international relations.

Constitutions

Constitutions are fundamental principles or precedents according to which a state or other organization is acknowledged to be governed.

Statutes

Laws enacted by legislative bodies at any level of government.