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Which of the Following Describes the Vicious Circle of Poverty

Question 115

Multiple Choice

Which of the following describes the vicious circle of poverty?


A) Because resources are limited, all economies eventually become poor.
B) In the long run, economies cycle between being rich and being poor.
C) For an economy to grow requires more consumption goods, which requires less capital goods, which means it will eventually become poor.
D) Due to excessive consumption, rich economies will destroy their resource base and eventually become poor.
E) Poor economies are poor because they do not produce sufficient capital goods, and without the production of sufficient capital goods, they remain poor.

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