What can be the major causes of the problem of poverty

Solution

(Explanation): Poverty in any economy is caused by multiple factors, which can be categorized into individual circumstances and economy-wide structural issues .  1.Lower Capital Formation – Lack of investment in infrastructure, technology, and industries leads to low productivity and economic stagnation, contributing to poverty. 2.Lack of Holding Structures – Weak property rights, lack of financial inclusion, and ineffective land ownership structures can prevent wealth accumulation and economic growth. 3.Lack of Demand – When aggregate demand in the economy is low due to unemployment or income inequality, businesses struggle, leading to further job losses and poverty. 4.Large Population – High population growth without proportional economic growth increases dependency, lowers per capita income, and leads to unemployment and poverty.