Which of the Following Provides the Best Explanation of Why

Multiple Choice

Which of the following provides the best explanation of why low-income countries generally remain poor?

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 rapid growth.
D) When the average income level is low, workers have little incentive to earn higher incomes.