The characteristics that create a vicious cycle of poverty in less developed countries are
a. low levels of current production and a declining population
b. stagnant production, poor infrastructure, and a declining population
c. low current output per capita, high population growth rates, and poor infrastructure
d. inefficient governments, low current production, and low tax rates
e. political instability and low population growth
C
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How can economic growth help a country combat "brain drain"?
A) Economic growth combined with decreasing returns to human capital require workers to achieve steadily higher and higher levels of education over time. B) Economic growth opens up opportunities for better jobs and higher incomes for skilled workers. C) Economic growth allows highly skilled persons to earn more in a foreign country than in their native country. D) Economic growth increases the incomes of low-skilled workers relative to high-skilled workers.
In a small open economy, when exports exceed imports, all of the following are true EXCEPT
A) net capital outflows are positive. B) net exports are positive. C) domestic investment exceeds domestic saving. D) domestic output exceeds spending.