What Dutch Policy Resulted in Periodic Famines in Its Colony

question 90

Multiple Choice

What Dutch policy resulted in periodic famines in its colony of Indonesia?

• A) Plantations were split into smaller units, thus altering the farm economy and disrupting production.
• B) Farmers were not allowed to export their crops, which diminished their ability to earn income with which to purchase food.
• C) An emphasis on tropical hardwood-derived exports resulted in large-scale deforestation and erosion.
• D) Farmers were coerced into producing export cash crops rather than food for themselves.

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Definitions:

Stockholders

Individuals or entities that hold stock in a company, thereby owning a portion of the company and having certain rights, such as the right to vote on corporate matters.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Dividend Irrelevance Theory

A theory suggesting that an investor's choice between investing in companies that pay dividends and those that do not does not affect the investor's overall return.

Reducing Near-Term Dividends

A financial strategy involving the reduction of dividend payouts to shareholders in the short-term, typically with the aim of reallocating funds for company growth or debt reduction.