Which of the Following Explains the Vicious Circle of Poverty

question 2

Multiple Choice

Which of the following 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 they 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.
• E) There are dual economies in the world: Some are meant to be rich and others are meant to be poor.

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