Asked by Sameer Ishaq on Jul 24, 2024

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Many economists believe that the key to breaking the vicious circle of poverty is to

A) cut down the mortality rates in poor nations.
B) reduce the birth rates in poor nations.
C) increase the mobility of labor and migration.
D) increase the rate of capital accumulation in poor nations.

Vicious Circle

A complex chain of events that reinforces itself through a feedback loop, often leading to a negative or detrimental outcome.

Poverty

A socio-economic condition characterized by a lack of access to essential resources, services, and opportunities necessary for a minimum standard of living.

Capital Accumulation

The process of acquiring and investing capital in order to increase the wealth or productive capacity of an economy.

  • Comprehend the mechanisms to break the vicious circle of poverty in developing nations, particularly through capital accumulation.
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DA
Dhruv AgheraJul 24, 2024
Final Answer :
D
Explanation :
Increasing the rate of capital accumulation in poor nations can create more jobs and opportunities, leading to economic growth and development. This can help break the vicious cycle of poverty by creating a more stable economic environment and increasing access to education, healthcare, and other resources. Additionally, it can reduce the reliance on foreign aid and encourage investment from other countries. Cutting down mortality rates and reducing birth rates may also have positive effects on poverty reduction, but they may not be sufficient on their own. Increasing mobility of labor and migration may be beneficial in some cases, but can also have negative consequences such as brain drain and social disruption.