People in poor countries may have difficulties achieving economic growth because:

Question

Quizplus · Accepted Answer

In order to achieve economic growth and increase their standard of living, poor countries must invest in capital goods. This requires cutting back on current consumption to allocate resources towards investment in capital goods, such as infrastructure, technology, and education. This is referred to as the "investment tradeoff" and is a common challenge faced by developing countries.

People in Poor Countries May Have Difficulties Achieving Economic Growth