Author Question: Which of the following statements explains the vicious circle of poverty? a. By investing in ... (Read 115 times)

wrbasek0 · **on:** Jun 30, 2018

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.
e. There are dual economies in the world: Some are meant to be rich and others are meant to be poor.

Question 2

Economic growth can be represented by a (an):
a. percentage change in real GDP.
b. rightward shift of the long-run aggregate supply curve (LRAS).
c. outward shift of a production possibilities curve.
d. all of the above.