Which of the Following Is True of the Supporters of Debt

question 9

Multiple Choice

Which of the following is true of the supporters of debt relief for HIPCs?

• A) They argue that free trade alone is sufficient to bring HIPCs out of poverty.
• B) They argue that new democratic governments should be forced to honor debts incurred by previous corrupt predecessors.
• C) They include Bono, the Dalai Lama, and Jeffrey Sachs among their ranks.
• D) They are working against the policies of the IMF and World Bank.

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Definitions:

Variable Costs

Costs that change in proportion to the level of output or activity in a business.

Economic Profits

The surplus remaining after total costs are deducted from total revenue, factoring in both explicit and opportunity costs.

Normal Rate

Refers to the standard, expected rate in financial or economic contexts, often used as a benchmark.

Short Run

The period of time for which two conditions hold: The firm is operating under a fixed scale (fixed factor) of production, and firms can neither enter nor exit an industry.