Question

Poverty is a vicious cycle. It hinders the development of a nation. Which of the following is not a significant feature of this cycle?

• A. Unemployment
• B. Subsidised goods
• C. Low income
• D. Low capital formation

Answer 1

The correct option is B Subsidised goods

There are many factors that keep people poor. Some of those could be low income, unemployment, and capital deficiency. Poverty leads to low income, thus low savings and low capital formation. All these factors work as a cycle and persist unless there is outside intervention. Subsidised food can be one such form of intervention.