Name two factors that Jeffery Sachs argues can cause poverty traps for individuals or for countries. (4 points) For one of these factors explain how it can impede economic development, how it can cause either individuals or countries to be trapped in poverty, and how it can be alleviated by an external intervention or a big push. (8 points). William Easterly has criticized the poverty trap argument on several grounds. Outline one of his arguments against the thesis that poverty traps of the kind Sachs identifies are the main reason keeping poor countries poor. (8 points).
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