Why may potential savings in a developing economy be greater than they appear? How can poor people be encouraged to save through financial institutions?
What will be an ideal response?
Students should recognize that poor people may save in the form of land, commodities, and ceremony, which substitute for the availability of trustworthy financial institutions. The chapter provides a focus on informal financial institutions, targeted on poor people, that can form the basis for answering the second question.
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According to the textbook application, radon
a. is a naturally occurring hazard b. is an involuntary risk c. poses no adverse health threat outdoors d. all of the above e. (a) and (b) only
In the above figure, household income is shown by flow
A) A. B) B. C) C. D) F.
Refer to Figure 9-3. If there was no quota, how many pounds of peanuts would domestic producers supply?
A) 10 million B) 28 million C) 30 million D) 40 million
When property rights are clearly defined and enforced, private owners will
a. use their property for selfish ends because they have little or no incentive to consider the desires of others. b. develop and direct their property toward uses that others value highly because the market will generally reward them for doing so. c. have little or no incentive to take care of their property or conserve it for the future. d. be unable to derive personal gain if they are sensitive to the desires of others when deciding how to use their property.