Use Figure 39W.3 (changing the box labels as necessary) to explain rapid economic growth in countries such as South Korea and Chile. What factors other than those contained in the figure might contribute to that growth? FIGURE 39W.3 The vicious circle ofLowpoverty. Low per capita incomes make it difficultfor poor nations to save and invest, a condition thatperpetuates low productivity and low incomes.Furthermore, rapid population growth may quicklyabsorb increases in per capita real income andthereby destroy the possibility of breaking out of thepoverty circle.per capitaincomeRapidpopulationgrowthLowLow levelLow levelproductivityof savingof demandLow levels ofinvestment inphysical andhuman capital

It's imperative to confront the vicious cycle of poverty as it sustains poor living conditions,…

Answered: Low productivity Low per capita income…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use Figure 39W.3 (changing the box labels as necessary) to explain rapid economic growth in countries such as South Korea and Chile. What factors other than those contained in the figure might contribute to that growth?

FIGURE 39W.3 The vicious circle of
Low
poverty. Low per capita incomes make it difficult
for poor nations to save and invest, a condition that
perpetuates low productivity and low incomes.
Furthermore, rapid population growth may quickly
absorb increases in per capita real income and
thereby destroy the possibility of breaking out of the
poverty circle.
per capita
income
Rapid
population
growth
Low
Low level
Low level
productivity
of saving
of demand
Low levels of
investment in
physical and
human capital

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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