Which of the Following Is an Argument Against Foreign Aid

question 13

Multiple Choice

Which of the following is an argument against foreign aid?

• A) It is a moral imperative to help those who are suffering.
• B) The return on investment in education or capital will be higher in a developing country than a high-income country.
• C) There are many cases where the aid has been diverted away from the intended purpose.
• D) An extra dollar makes a bigger relative difference to a poor person than a wealthy person.

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Definitions:

Prudent Person

A legal standard used to represent the hypothetical individual who exercises average care, skill, and judgment in decision-making, serving as a comparative standard in legal and financial fields.

Discretionary Investment Power

The authority given to a person or entity to make investment decisions on behalf of another without needing express consent for each decision.

Conservative Debt Securities

Investment vehicles such as bonds or debentures that are considered lower-risk due to stable income features and the issuer's strong financial position.

Prudent Person

A legal standard requiring individuals to act with the care, diligence, and wisdom that a reasonable person would exercise under similar circumstances.