Suppose that surplus labor in a Pakistani village is used to build a medical clinic and dig several wells. This is an illustration of
A) foreign aid.
B) capital-saving investment.
C) in-kind investment.
D) technological advance.

Question

Quizplus · Accepted Answer

The scenario described is an example of in-kind investment, where surplus labor is used to create physical infrastructure in the form of a medical clinic and wells. This is different from foreign aid, which typically involves the transfer of resources or money from one country to another. The scenario also does not involve capital-saving investment or technological advance, as it is based on the use of labor rather than new machinery or advanced technology.

Suppose That Surplus Labor in a Pakistani Village Is Used