Some Low-Income Countries Generally Remain Poor Because

question 54

Multiple Choice

Some low-income countries generally remain poor because

• A) their institutional arrangements and policies often discourage productive activity and reduce the potential gains from specialization and exchange.
• B) they are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates.
• C) they are poorly endowed with natural resources, which are essential for long-term growth.
• D) when the average income level is low, workers have little incentive to earn higher incomes.

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Definitions:

Focus Group

A research method involving guided discussions with a group of people to gather diverse perspectives on a particular subject.

Positive Correlation

Positive correlation exists when two variables move in the same direction, meaning that as one variable increases, the other variable also increases.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, and vice versa.

Causal Relationship

A connection between two events where one directly results in the occurrence of the other, often determined through correlation and experimentation.