Some low-income countries generally remain poor because
a. their institutional arrangements 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 growth.
d. when the average income level is low, workers have little incentive to earn higher incomes.
A
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Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as
a. unemployed and in the labor force. b. unemployed but not in the labor force. c. in the labor force but not unemployed. d. neither in the labor force nor unemployed.
What is income redistribution?
What will be an ideal response?