(Last Word) Loans Offered Through Microcredit Programs

question 251

Multiple Choice

(Last Word) Loans offered through microcredit programs

• A) are usually spent on food.
• B) suffer from low repayment rates.
• C) have very high repayment rates.
• D) have lifted borrowers out of poverty at a faster pace than nonrecipients of loans.

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Definitions:

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.

Rent-Seeking Behavior

Activities aimed at increasing one's share of existing wealth without creating new wealth, often through manipulating the social or political environment.

Net Social Gain

The total benefit to society from producing and consuming a good or service, taking into account both the private benefits and costs and any external benefits or costs.

Innovation

The process of creating new products, services, processes, or technologies that deliver value to society or the market.