Economics · Economic Development
Which of the following sequences represents the demand-side vicious circle of poverty?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Low demand → Low saving → Low productivity → Low investment → Capital deficiency
- 2Low income → Low investment → Low demand → Low Capital deficiency
- 3Low productivity → Low income → Low savings → Low investment → Capital deficiency
- 4Low income → Low demand → Low investment → Capital deficiency → Low productivity → Low income✓
Correct answer
Low income → Low demand → Low investment → Capital deficiency → Low productivity → Low income
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