Which of the following is the most critical factor contributing to poverty reduction across the world? Sustained economic growthPolicies of income redistribution by governments.Foreign aid.Education

Answered: Which of the following is the most…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter18: Income Distribution And Poverty

Section: Chapter Questions

Problem 3QFR

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Which of the following is the most critical factor contributing to poverty reduction across the world?

Sustained economic growth
Policies of income redistribution by governments.
Foreign aid.
Education

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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The most critical factor playing a role in poverty reduction across the world is commerce, trading, exchanges between different countries. All these factors lead to economic growth. Economic growth leads to the introduction of new job opportunities, new scenes, new businesses, new investment plan which helps in reducing unemployment. Unemployment is also a factor in causing poverty. Economic growth helps in reducing unemployment and also providing opportunities to poor people. Hence, leading to reducing in poverty.

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