The Vicious circle theory indicates that ?

A. a country is poor because it has lower productivity but high savings
B. as countries grow richer they save less
C. poverty perpetuates itself in mutually reinforcing circles on supply and demand sides
D. market size is large in LDCs

The essential difference between capitalism and socialism is that ?

A. capitalism exploits the worker and socialism exploits the property owner
B. capitalism relies on the market to make economic decisions and socialism uses central planning
C. capitalism grows through rent seeking and socialism grows through government direction
D. capitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction

The Vicious circle theory states that ?

A. growing government assistance create addiction to welfare programs
B. low income levels create pressure for money creation
C. low income levels create pressure for cheap imports
D. low per capita incomes creates low savings that keep incomes low

A major dependency theorist Andre Gunder Frank Suggests that the following economic activities have contributed to underdevelopment:

I- Workers migrating from villages to foreign-dominated urban complexes
II- Forming an unskilled labor force to work in factories and mines and on plantations
III- Replacing indigenous enterprises with technologically more advanced global subsidiary companies
IV- Closing the economy to trade with and investment from, developed countries

A. I and II only
B. II and III only
C. I, II and III only
D. I , II III and IV

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