A poverty trap:
A) occurs when poor nations save "too much."
B) is a self-reinforcing mechanism that causes the poor to stay poor.
C) occurs when nations devote too much of the budget to foreign aid and not enough to domestic poverty.
D) is the legislative struggle that occurs when passing poverty-reducing legislation.

Question

Quizplus · Accepted Answer

A poverty trap is a self-reinforcing mechanism that causes the poor to remain poor. This can happen when individuals or communities lack access to basic resources or opportunities that would allow them to escape poverty. For example, a lack of education or job opportunities can make it difficult for someone to improve their economic situation. In turn, this can lead to a lack of investment in the community, inadequate infrastructure, and other factors that make it difficult to break out of poverty.

A Poverty Trap