Women and Economic Development Practice Test

Secondary-source excerpt (embedded): Research on microcredit programs finds that small loans to women can increase business start-up rates and smooth household consumption, especially where women have limited collateral. However, impacts vary widely by local markets, interest rates, borrower training, and intra-household power. Some borrowers use loans for emergencies rather than investment, and repayment pressure can shift risk onto women without changing structural constraints like land access, childcare burdens, or discriminatory labor markets.

Which option most accurately summarizes the excerpt’s evaluation of microcredit in women’s economic development?

A development economics synthesis notes that women’s access to land titles, extension services, and inputs is often lower than men’s, even when women perform substantial agricultural labor. The author argues that closing these gender gaps can raise farm output and household welfare, but only if reforms also address constraints like unpaid care burdens and limited decision-making power over income. Which statement best reflects this synthesis?