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:

Southwestern New Mexico

A region in the southwestern part of the state of New Mexico, characterized by its beautiful desert landscapes and rich cultural history.

Real GDP

The calculation of a nation's total economic output accounting for price level changes over time, to represent the real value of all produced goods and services using stable prices.

Annual Growth Rate

The percentage change in the value of a particular economic variable over the course of a year, indicative of the variable's expansion or contraction over time.

Income Rankings

A hierarchy or classification of incomes, from the lowest to the highest.