What is meant by the "vicious cycle of poverty," and what are some of the requirements needed to escape this cycle?
What will be an ideal response?
The vicious cycle is presented in the chapter. Key points include low productivity, low savings, and low investment, perpetuating low productivity. Escaping the cycle may be approached through infusions of capital or new ideas of production and social interaction.
You might also like to view...
Moral hazard occurs when an agreement encourages undesirable behavior
Indicate whether the statement is true or false
Since the firm in the above figure is operating in a monopolistically competitive industry, in the long run we can expect to see
A) the typical firm's economic profits expand as production becomes more efficient. B) more firms entering the industry until economic profits are zero. C) the typical firm producing at the minimum point on its ATC curve. D) each firm expand its share of the total market.