Investment in-kind refers to the possibility that
A) DVCs will invest for the purpose of becoming less dependent on world markets.
B) a DVC will overinvest in industries in which it has a comparative advantage, disrupting its development program.
C) newly established manufacturing ﬁrms may expand by reinvesting their proﬁts.
D) surplus labor in, say, agriculture can be diverted to the production of simple capital goods such as earthen dams.

Question

Quizplus · Accepted Answer

Investment in-kind refers to the allocation of resources, such as labor or materials, directly into projects or production without involving financial transactions. Option D describes a scenario where surplus labor is utilized in creating capital goods (earthen dams), which is a direct form of investment without monetary exchange, fitting the definition of investment in-kind.

Investment In-Kind Refers to the Possibility That