What Do Critics Charge Are Some Effects of Structural Adjustment

question 51

Multiple Choice

What do critics charge are some effects of Structural Adjustment Programs for refinancing loans to LDCs?

• A) more efficient civil service
• B) diverting investment from weapons and training for the military to social needs such as health and education
• C) investment benefiting the poor, not just the elite
• D) more dissemination of information to the public
• E) workers in state enterprises losing their jobs and support for dependent citizens being cut

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Definitions:

Marginal Social Benefit

Marginal social benefit is the additional gain to society as a whole from an additional unit of a good or service.

Socially Optimal

Refers to a situation where goods or services are produced and consumed at a level that maximizes overall social welfare.

Pollution

The contamination of the environment with harmful or poisonous substances, adversely affecting the health of living organisms and ecosystems.

External Costs

Costs of an economic activity that are not borne by the participants but rather by other people or society at large.