What is microfinance, and how can it contribute to economic growth?
What will be an ideal response?
Microfinance is the granting of small, unsecured loans to small businesses and entrepreneurs. In poor nations it is very difficult for people to save money to invest in their business or livelihood. Yet capital investment is key to economic growth. A small loan that allows a farmer to purchase better seed or lets a small restaurant owner buy an indoor grill can make a big difference in productivity. Little by little this accumulates into increased output or economic growth.
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Gary has to decide between attending a two-day art workshop and a four-day art workshop. If he evaluates only the change in net benefit when he switches between the two options, he is using the technique of:
A) ordinal analysis. B) comparative statics. C) optimization in levels. D) optimization in differences.
Effective protection will be greater if, all else equal,
a. imported inputs are a small percentage of the final product b. tariffs on imported inputs are high c. tariffs on the final product are low d. quotas are added to tariffs on imported inputs e. none of the above
Each Federal Reserve bank has nine directors. Of these ________ are appointed by the member banks and ________ are appointed by the Board of Governors
A) three; six B) four; five C) five; four D) six; three
In the short run, the price at which a firm's total revenues equal its total costs is
A) a point of positive profits. B) a no return price. C) the short-run shutdown point. D) the short-run break-even point.