Economics of Macro Issues 7th Edition by Roger LeRoy Miller,Daniel Benjamin

Exercise 5

Most international attempts to aid people living in low-income nations have come in one of two forms: (i) gifts of consumer goods (such as food), and (ii) assistance in constructing or obtaining capital goods (such as tractors or dams or roads). Based on what you have learned in this chapter, how likely are such efforts to permanently raise the standard of living in such countries? Explain.