Which of the Following Statements Explains the Vicious Circle of Poverty

question 52

Multiple Choice

Which of the following statements explains the vicious circle of poverty?

• A) By investing in education and infrastructure at the same time, the country can overcome the problems of poverty.
• B) Poverty arises out of the lack of investment, but countries cannot invest because they are poor.
• C) A nation can shift its production possibilities curve inward by shifting more resources into the production of capital goods.
• D) A nation can shift its production possibilities curve outward by shifting more resources into the production of consumer goods.

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Definitions:

Homestead Act

A U.S. law enacted in 1862 that provided 160 acres of public land free of charge to any adult who completed five years of continuous residence and cultivation on the land.

Public Land

Land owned by the government rather than private individuals, often designated for public use, conservation, or as government facilities.

Western Settlement

The expansion and colonization of areas in North America by European settlers, primarily in the 19th century, moving westward.

Non-War-Related Legislation

Laws and regulations passed by a legislative body that deal with matters outside of military conflict or national defense issues.