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What is a direct consequence of resource misallocation due to poverty?

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Question

What is a direct consequence of resource misallocation due to poverty?

Options

  • Greater spending on health and education

  • Increased investments in infrastructure

  • More allocation to subsidies, less for development sectors

  • Rapid technological progress

MCQ
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Solution

More allocation to subsidies, less for development sectors

Explanation:

When more resources go to subsidies and welfare, sectors like health, education, or infrastructure may be neglected, affecting overall development.

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