Describe the vicious cycle of poverty. What are the consequences of this cycle?
What will be an ideal response?
The vicious cycle of poverty explains that the people in LDCs are poor because of a low level of investment in capital goods production, and the low level of investment is because the people are poor. The consequences are high infant mortality rates, low life expectancy, a low percentage of people using safe water, and a low percentage of school aged children in school.
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If the marginal propensity to consume is 0.6, the marginal propensity to save is
A) 0.4. B) 0.6. C) 1. D) 1.5.
Adam Smith's book, The Wealth of Nations, was published at the time of the:
a. War of 1812 b. U.S. Declaration of Independence. c. U.S. Civil War. d. Great Depression.
If the government fiscal deficit equals $78 billion, government borrowing equals $38 million, and tax revenue equals $92 billion, what is the value of the change in the money supply?
a. $40 billion b. $132 billion c. $18 billion d. $208 billion e. $78 billion
When the price of coffee is $2.2 per cup, 11 million cups are demanded, and when the price of coffee goes up to $2.6 per cup, 10 billion cups are demanded. The coffee in this range has a(n)
A) elastic demand. B) inelastic demand. C) unit elastic demand. D) perfectly elastic demand.