An analysis of production possibilities curves indicates that the reason why underdeveloped nations have difficulties increasing their economic growth rates is because:

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Option D states that underdeveloped nations have to cut back their already meager consumption levels to increase capital production. This is supported by the production possibilities curve, which shows that to increase production of capital goods, a nation must sacrifice the production of consumption goods. This trade-off is particularly difficult for underdeveloped nations, as they already have low levels of consumption and cutting it back further can lead to social unrest. This can be a significant barrier to increasing economic growth rates in underdeveloped nations. Option A is incorrect because low population growth rates can actually be an advantage if the workforce is well-educated and can be efficiently utilized. Option B and C are also incorrect because they do not adequately explain the challenges faced by underdeveloped nations in increasing their economic growth rates.

An Analysis of Production Possibilities Curves Indicates That the Reason