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:

Racial Divisions

The separation or categorization of people based on racial or ethnic differences, often leading to inequality and discrimination.

Racial Issue

Social, economic, or political problems or controversies that arise out of perceptions, prejudices, and inequities associated with racial categories or identities.

Black Underclass

A segment of the African American community experiencing systemic socio-economic disadvantages and discrimination, often living in poor urban areas.

William Julius Wilson

An influential American sociologist noted for his work on urban sociology, race, and class in the United States.