Economics Unit 4 Development

1. What type of aid has to be paid back?

  • Tied aid
  • Loan aid
  • Multilateral aid
  • Bilateral aid
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2. Why is the savings gap a limit on growth and development?

  • It prevents the appreciation of a currency
  • It causes unemployment
  • It prevents investment in capital
  • It creates inequality

3. What is it called when government seeks to further its own interest rather than that of the people?

  • Bureaucracy
  • Corruption
  • Ministerial responsibility
  • Clientelism

4. What effect would debt cancellation have on developed countries?

  • Shareholders would carry some of the burden
  • Unemployment
  • Inflation
  • More imports

5. Microfinance tends to be given to which group?

  • Teachers
  • Women
  • Big business owners
  • Children

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