The Vicious-Circle-Of-Poverty Hypothesis States That Poor Countries

question 51

Multiple Choice

The vicious-circle-of-poverty hypothesis states that poor countries

• A) are unable to save and invest enough to accumulate capital stock that would help them grow.
• B) cannot develop because they lack the ability to educate their workers.
• C) cannot develop because their economic policies are ineffective.
• D) cannot develop because people don't consume due to lack of goods and services.

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Definitions:

Cost of Goods Sold

Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Perpetual Inventory System

A perpetual inventory system is a method of tracking inventory in real-time, with continuous updates to inventory records as sales and purchases occur.

Gross Method

An accounting practice where discounts for prompt payment are recorded as reductions of expense if taken.

General Journal Entries

Records of financial transactions not assigned to specific accounts in the general ledger, but recorded in a general journal.