Which of the Following Provides the Best Explanation of Why

question 1

Multiple Choice

Which of the following provides the best explanation of why low-income countries generally remain poor?

• A) Their political environment 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 rapid growth.
• D) When the average income level is low, workers have little incentive to earn higher incomes.

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Definitions:

Passion

A powerful feeling of enthusiasm or excitement for something or about doing something.

Abu Ghraib Prison

A prison in Iraq that gained international notoriety for human rights abuses committed by members of the U.S. military during the Iraq War.

Zimbardo's Prison Study

A controversial psychological experiment conducted by Philip Zimbardo in 1971 to investigate the effects of perceived power, focusing on the struggle between prisoners and prison officers.

Event

An occurrence or happening, especially one of significance.