Which of the following statements explains the vicious circle of poverty?
A. By investing in education and infrastructure at the same time, the country can overcome the problems of poverty.
B. Poverty arises out of the lack of investment, but countries cannot invest because they are poor.
C. A nation can shift its production possibilities curve inward by shifting more resources into the production of capital goods.
D. A nation can shift its production possibilities curve outward by shifting more resources into the production of consumer goods.
Answer: B
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