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Development Economics
» Foreign aid »
Knowledge Problems and Incentive Problems
» Knowledge Problems and Incentive Problems - Practice Questions
Knowledge Problems and Incentive Problems - Practice Questions
1. One problem of foreign aid is:
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a lack of feedback on whether or not the “gifts” given to developing nations are wanted or beneficial
a lack of appropriate incentives. People may be giving in order to feel good rather than helping developing nations
both a. and b.
