In the context of development, the 'Poverty Trap' refers to:
A. Only the absence of foreign aid
B. A temporary decline in income
C. A self-reinforcing mechanism that causes poverty to persist
D. A situation that always disappears automatically
Answer: Option C
Solution (By JKSSB Mock Tests)
A poverty trap is a self-perpetuating condition in which an economy or household remains poor because the existing level of poverty itself prevents the accumulation of capital or adoption of better technologies.
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