The IMF Often Requires Countries That Borrowed from It to Introduce

question 68

Multiple Choice

The IMF often requires countries that borrowed from it to introduce policies that privatize government-owned industries such as telecommunications and power generation.This is an example of:

• A)a balance of payments constraint.
• B)conditionality.
• C)limited capital account convertibility.
• D)infrastructure investment.

---

Definitions:

Pareto Optimal

A scenario in resource distribution where it's impossible to benefit one individual through reallocation without causing harm to another individual.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that no one can be effectively excluded from use and one person's use does not diminish another's.

Private Consumption

The spending on goods and services by individuals or households, as opposed to public or government spending.

Social Welfare Function

An economic function that ranks societal allocations of resources based on ethical principles, intending to maximize collective satisfaction or utility.