A poverty trap is:
A. what develops when poor nations save "too much."
B. a self-reinforcing mechanism that causes the poor to stay poor.
C. what develops when nations devote too much to foreign aid and not enough to domestic poverty.
D. the lowest quartile of income earners in a given country, because it is highly unlikely they will ever move out regardless of policy.
B. a self-reinforcing mechanism that causes the poor to stay poor.
You might also like to view...
A monopolistically competitive industry is like a purely competitive industry in that
A. each industry produces a standardized product. B. nonprice competition is a feature in both industries. C. firms in both industries face a horizontal demand curve. D. neither industry has significant barriers to entry.
Explain how advertising influences the demand for a firm's product
What will be an ideal response?
U.S.-based John Deere sells machinery to residents of South Africa who pay with South African currency (the rand)
a. This increases U.S. net capital outflow because the U.S. acquires foreign assets. b. This decreases U.S. net capital outflow because the U.S. acquires foreign assets. c. This increases U.S. net capital outflow because the U.S. sells capital goods. d. This decreases U.S. net capital outflow because the U.S. sells capital goods.
If good weather conditions result in a larger than normal crop of peaches, then the
A) equilibrium price of peaches rises, and the equilibrium quantity of peaches increases. B) equilibrium price of peaches falls, and the equilibrium quantity of peaches increases. C) demand curve for peaches shifts leftward. D) increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases. E) equilibrium price of peaches falls, and the equilibrium quantity of peaches decreases.