Which of the following is an example of a poverty trap?
A) extended time periods without war
B) a lack of mineral wealth
C) a dysfunctional or corrupt government
D) laws and regulations that help detect fiscal fraud

Question

Which of the following is an example of a poverty trap?  
A) extended time periods without war 
B) a lack of mineral wealth 
C) a dysfunctional or corrupt government 
D) laws and regulations that help detect fiscal fraud

Quizplus · Accepted Answer

A poverty trap refers to a situation in which an economy remains stuck in poverty due to a self-reinforcing cycle. This can happen when a dysfunctional or corrupt government fails to provide basic infrastructure, education, and healthcare to its citizens, leading to low levels of human capital and poor economic growth. Lack of mineral wealth (B) may limit a country's potential for economic growth, but it does not necessarily create a poverty trap. Extended time periods without war (A) and laws/regulations that help detect fiscal fraud (D) are not related to poverty traps.

Which of the Following Is an Example of a Poverty