Development Assistance Is Designed to Encourage a Developing Country to

question 135

Multiple Choice

Development assistance is designed to encourage a developing country to

• A)increase consumer goods today.
• B)restrict the inflow of foreign direct investment.
• C)invest in its capital stock.
• D)reduce labor productivity.

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Definitions:

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Behavioral Economists

Scholars who study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Faulty Heuristics

Incorrect or misleading cognitive shortcuts that are used to make decisions or solve problems.

Neurons

Specialized cells within the nervous system that transmit information through electrical and chemical signals.