Why are poor countries poor?
A) because they have more human capital
B) because they have more physical capital
C) because they experience high labor productivity
D) because they experience low labor productivity
E) because they experience bad weather

Question

Quizplus · Accepted Answer

Poor countries typically have lower levels of education, skills, and technology, resulting in low labor productivity. This limits their ability to produce goods and services, causing low economic growth and income levels. Lack of physical capital, bad weather, and other factors may also contribute to poverty, but low labor productivity is usually the root cause.

Why Are Poor Countries Poor