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.
Correct Answer:

Verified
Correct Answer:
Verified
Q110: A country should always specialize in the
Q111: Exhibit B-1 below shows the quantity of
Q112: Capital is a good used in the
Q113: The quantity of one good that is
Q114: Which of the following is an example
Q116: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10702/.jpg" alt=" -In Exhibit B-17,
Q117: Any point inside a production possibilities curve
Q118: When technological progress occurs, the production possibilities
Q119: The production possibilities curve shows the different
Q120: If a resource is unemployed, it<br>A) is