Low income means less saving, and less saving means _____
A) more hard work and lower labor productivity
B) more investment in human capital.
C) more savings and less consumption.
D) more hard work and higher labor productivity.
E) less investment in human and physical capital.

Question

Quizplus · Accepted Answer

When individuals and households have lower incomes, they generally have less capacity to save and invest in both human and physical capital. This can result in a cycle of limited economic growth and opportunities for upward mobility. When individuals have less ability to invest in themselves or their businesses, they may have less access to education, training, or technology that could help them improve their productivity and earnings potential over time. As a result, lower income levels could perpetuate a lack of resources, leading to lower savings, investment, and economic growth in the long run.

Low Income Means Less Saving, and Less Saving Means _____