The vicious circle of poverty is the trap in which the LDC is too poor to save and therefore it cannot invest and remains poor

According to new growth theory ________

A) ever-advancing productivity keeps the population growth rate high B) knowledge does not experience diminishing returns C) growth rates and income levels per person around the globe will converge D) knowledge is subject to the law of diminishing returns

Internal markets

A) do not have the same problems as external markets. B) have externalities but do not fail. C) have the same problems as external markets. D) are more useful relative to external markets.