Asked by Katie Creager on Jul 09, 2024

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Which of the following would most help a developing country (DVC) break out of the vicious circle of poverty?

A) more consumption
B) more food production
C) an increase in the birth rate
D) an increase in labor productivity

Vicious Circle

A complex chain of events that reinforces itself through a feedback loop, leading to a detrimental situation.

Poverty

The state of having inadequate income or resources to achieve a minimum standard of living.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced (output) with the number of hours worked to produce those goods and services.

  • Understand the processes to interrupt the cycle of poverty in developing countries, especially by means of capital accumulation.
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CP
Colton PalmerJul 15, 2024
Final Answer :
D
Explanation :
Increasing labor productivity would mean that workers are producing more goods and services in a given amount of time, which could lead to increased economic growth and higher incomes. This could help a DVC break out of the vicious circle of poverty. More consumption or more food production may not necessarily lead to sustained economic growth and could even exacerbate imbalances in resource allocation. Increasing the birth rate could strain already limited resources and aggravate poverty.