Question

Feel comfortable to express your own thoughts and ideas in a brief paragraph or two.

Topic: When you travel to South America, you encounter countries that have a vast amount of natural resources, and very large labor forces. However, despite an abundance of these resources, you also see a lot of poverty.

Can you provide an economic explanation of why poverty exists?

Answer 1

Answer:

Basing on economics, poverty may be as a result of poor allocation of scarce resources among the citizens. Also poverty is as a result of unequal distribution of available resources such as capital.

Poverty exists in those countries because the natural resources have not been ernest fully to provide the monetary value hence the poverty levels are still high

in order for economic growth and improvement in living standards, in the economy people should increase their incomes as well as increase in countries GDP. in order for this to happen we must have a country endowed with natural recrudesces as well as labor force. however this is not enough to change the economy, as it also requires well equipped entrepreneurs who will gather the resources and produce. increase in productivity will increase the wages and salaries and hence improving the living standards.

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