Critics of debt relief make all of the following arguments EXCEPT
A) it would be wasted money since the conditions that caused the debt would be likely to persist.
B) countries with large foreign debts are poorly administered.
C) debt relief can quickly fuel a new round of borrowing that simply restores debt to prior levels.
D) debt relief will encourage other nations to borrow excessively with the hope that their debts may be forgiven in the future.
E) the cost of debt relief to the most severely indebted countries is too large for the high income countries to afford.
E
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Free riders are not a problem in the market for a private good because
A) non-payers can be excluded from consuming the good. B) the good is a rival good. C) the good can be produced only at a positive marginal cost. D) the free rider will not get caught.
The term "born with a silver spoon in his mouth" mistakenly implies
A) only monetary endowments allow one to trade with others. B) only the wealthy are strong negotiators in trade. C) endowments are physical. D) endowments differ.