What Implications for the Effectiveness of Foreign Aid Would There

question 62

Multiple Choice

What implications for the effectiveness of foreign aid would there be if low-income nations have lower marginal products of capital?

• A) Foreign aid would probably be more effective.
• B) Foreign aid would be preferable to private investment.
• C) Foreign aid would suffer the same problems as private investment and possibly be ineffective in increasing productivity.
• D) To be effective, foreign aid provided by governments would have to be managed by private concerns.

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Definitions:

American Children

The youth population within the United States of America, encompassing individuals from birth through adolescence under various social, cultural, and legal considerations.

Food Stamps

A government assistance program providing low-income households with coupons or electronic benefits to buy food.

World

The earth and all life on it, including human civilization and the natural environment; often used in a global context to discuss issues affecting the planet and its inhabitants.

Day

A unit of time equal to 24 hours, representing the period it takes for the Earth to complete one full rotation on its axis.