One of the New International Economic Order proposals would
a. establish a ratio between foreign aid and the indebtedness of low-income states.
b. require the already-developed states to provide 0.7 percent of their GNIs for foreign aid.
c. provide guidelines for the World Bank's choice of projects to fund that would favor exports.
d. encourage developed states to set upper limits on the subsidies they provide for their own farmers.
e. do all of the above.
Participatory development emphasizes
a. economic growth development strategies such as producing labor-intensive products for export.
b. local initiatives that implement the research-based findings of outside technical experts.
c. that projects must be compatible with the local community's natural environment.
d. the effective use of private as opposed to public financing since it results in fewer restrictions and future ties.
e. All of the above are correct.
Microcredit projects and programs assume
a. international NGOs often produce neocolonial dependencies.
b. local moneylenders need additional support.
c. very poor people have intelligence and skills.
d. individual borrowers must bear the repayment responsibility.
e. small loans to the poor make sense, but professionals should do other banking activities.
Economies of scale means that the per-unit cost of a product
a. decreases with increased production of the product.
b. increases as the cost of inputs such as raw materials increases.
c. decreases when the market creates less demand.
d. increases because inputs remain about the same.
e. changes little.
Those with a liberal economic perspective advocate which of the following as a development strategy?
a. grassroots projects
b. government intervention in the economy
c. projects addressing basic needs
d. economic growth through trade
e. subsidies for infant industries
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