x Topic Discussion Topic 1 x courses35151discussion topics29

x Topic: Discussion Topic 1 x /courses/35151/discussion topics/29551:3 This is a graded discussion: 20 points possible Discussion Topic 1 Due Date: Sunday, January 7 by 11:45pm. 20 points Feel comfortable to express yourfown thoughts and ideas in a brief paragraph or two. Topic: due Jan 7 When you travel to South America, you encounter countries that have a vast amount of natural resources, and very large labor force s. However, despite an abundance of these resources, you also see a lot of poverty. Can you provide an economic explanation of why poverty exists? Unread Subscribe Search entries or author HTML Editor Paragraph

Solution

Economic reasons refer to the production and distribution of income and wealth. South American countries are poor because of the following:

1. The population of the South American countries are very high.

2. The per-capita income is very low and the distribution of income and wealth among the population is unequal.

3.South American economies are based on agriculture and natural resources. They are not industrialized.

4. Skilled labor force is lacking. More people are in the unorganized labor force than in the organized labor force.