O-LevelEconomicsEconomic development2281/12 · Oct/Nov 2020 · Q241 Mark
In countries with absolute poverty, low incomes can start a process that keeps incomes low. What are the stages of this process?
Alow incomes → low consumption → low prices → low output → low incomes
Blow incomes → low government spending → high taxation → low employment → low incomes
Clow incomes → low investment → high profits → low dividends → low incomes
Dlow incomes → low saving → low investment → low productivity → low incomes
✓ Correct answer
D: low incomes → low saving → low investment → low productivity → low incomes
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Economic development and see which topics are most likely to come up next.
Sign up free →