Which of the Following Best Describes the Vicious Cycle of Poverty?​

question 114

Multiple Choice

Which of the following best describes the vicious cycle of poverty?​

• A) ​Rich countries eventually decline because its citizens become lazy.
• B) ​Poor countries eventually improve through investment in education, infrastructure, and capital accumulation.
• C) ​Rich countries stay rich through continued high levels of investment in education, infrastructure, and capital accumulation.
• D) ​Poor countries stay poor because they cannot afford to invest in education, infrastructure, and capital accumulation.

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Definitions:

Minimum-Wage Laws

A law that establishes the minimum hourly wage employers are legally allowed to pay their employees.

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate in an economy or specific market.

Working Poor

Describes individuals who are employed but whose earnings are insufficient to meet the basic costs of living.

Maximin Criterion

A principle in decision making which aims to maximize the minimum gain, often used in the context of ensuring the best worst-case scenario.