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The concept of vicious circle of poverty is associated with
Lack of income and money is generally associated with.. The concept of vicious circle of poverty. Vicious Circle of Poverty A'' Country is poor become it is poor: Another major cause of economic backwardness is the vicious circle of poverty. [ Due to backwardness there is not optimum use of resources and due to this reason goods are not produced on the principle of specialisation and division
of labour and hence production remains low. Low level of production is due to imperfect markets. Therefore, the level of income of the people is low and hence, level of savings is low. Low level of savings is responsible for low level of investment as a result capital formation rate remains low and problem of shortage of capital arises in these countries and therefore, shortage of capital is the major cause of their underdevelopment. ]
Expert answered|LailaL|Points 10|
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Asked 298 days ago|6/29/2013 7:28:12 AM
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