"Countries Are Poor Because They Cannot Afford to Save and Invest

question 3

Multiple Choice

"Countries are poor because they cannot afford to save and invest" is called the:

• A) vicious circle of poverty.
• B) savings-investment trap.
• C) LDC trap.
• D) cycle of insufficient credit.

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Definitions:

Private Information

Information that some people have, but others do not.

Economic Decisions

Choices made by individuals, businesses, or governments involving the allocation of resources to satisfy their needs and desires.

Correlated Risks

Risks that are linked in such a way that the occurrence of one affects the likelihood of the occurrence of another.

Agricultural Industry

The sector of the economy that deals with the production, processing, and distribution of food, fibers, and other goods derived from farming and related activities.