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What is aid?
Aid is the administered transfer of resources by a donor country or international agency or non-government organisation to less developed countries to encourage economic growth. It can be between two (bilateral) or several (multilateral) countries/institutions
• Bilateral aid is generally tied aid is while recipients should purchase products through the donor country. An International Monetary Fund loan with a conditional SAP attached is other illustration of tied aid.
• Multilateral aid is generally untied aid which can be spent into any country.
a. Argument for tied aid: the donor country makes sure aid is used for suitable purposes and its own economy advantages
b. Argument against tied aid: purchases may not show best value for money
c. Tied aid is frequently conditional for example on market reforms
• Grants that do not have to be repaid
• Concessional loans repaid at lesser interest rates and over longer eras than commercial bank loans.
• Aid can be into the form of goods, money or technical assistance.
What is the Heavily Indebted Poor Country Initiative? The Heavily Indebted Poor Country (HIPC) aims to assist the poorest, most heavily indebted countries prevent by unsustain
Consider the economy (above) again where the following set of stocks is traded: x 1 =(2,2,0) x 2 =(1,0,3) x 3 =(0,2,4) for the prices (p 1 , p 2 , p 3 )=(1, 1, 1).
1. A monopolist faces the industry demand Q=400-0.5 p and has constant marginal costs of 8, with no fixed costs. a) What is the monopoly price? What is the monopoly quantity?
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