With tied aid
(a) MNC investment depends on tax concessions.
(b) aid recipients must use the aid to purchase goods and services from the donor.
(c) aid recipients must follow World Bank/IMF conditionality.
(d) all of the above.
Question 2 - What is social capital, and how is it connected to economic development?
What will be an ideal response?
Question 3 - Describe the costs of water pollution.
What will be an ideal response?
Question 4 - One problem with unrestricted global capital movements is that capital suppliers may
a. have little information about conditions overseas
b. react quickly to bad news regardless of economic fundamentals
c. be interested in short-run gains rather than development objectives
d. all of the above
Question 5 - If workers and firms can fully anticipate the price change in the economy from a particular policy
A) then the policy will not impact employment levels.
B) then the policy will not cause inflation.
C) then the policy will be effective at changing employment levels.
D) then the policy will be crowded out by the exchange rate.
Question 6 - Describe the costs of deforestation.
What will be an ideal response?
Question 7 - A motivation of developed countries in providing development assistance is
(a) the creation of markets.
(b) geopolitical influence.
(c) genuine humanitarian concern.
(d) all of the above.
(e) none of the above.
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