The Vicious Circle of Poverty Refers to the Fact That

question 63

True/False

The vicious circle of poverty refers to the fact that LDCs are poor because other countries do not want to buy their goods and services.

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Definitions:

Marginal Product

The rise in production resulting from one more unit of input.

Price of Labor

The compensation workers receive for their contribution to the production process, often synonymous with wage rate.

Economic Profits

The margin by which a firm's total sales exceed its complete set of expenses, both overt and covert.