Some Low-Income Countries Generally Remain Poor Because

Multiple Choice

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.