Question

107) Which of the following is a valid shortcoming of the use of foreign aid to eradicate poverty? 107) A) It can lead to polarization of the world economy. B) It is difficult to transfer aid to poor countries. C) It mostly leads to the transfer of resources among rich countries. D) It may not lead to a sizeable increase in physical capital in poorer countries. 108) Which of the following statements is true of foreign aid? 108) A) Foreign aid is directly responsible for reducing corruption in developing nations. B) In practice, much of foreign aid does not get invested in new technology or education. C) Foreign aid is regressive to development. D) Foreign aid is provided only by financial institutions such as the World Bank. 109) Which of the following statements is true of foreign aid? 109) A) The concept of foreign aid was introduced in the 21st century. B) Foreign aid is always efficient in eradicating poverty. C) Foreign aid is only provided to sub-Saharan regions. D) In some instances foreign aid can be beneficial to dictators. 110) Which of the followings statements correctly identifies an advantage of using foreign aid to eradicate poverty? 110) A) Its flow is transparent and can be questioned by all individuals in the receiving country. B) It directly increases the efficiency of production in poorer countries. C) It is extremely efficient in countries where institutions are extractive. D) It leads to a redistribution of income around the world. 111) Private property rights mean that: 111) A) individuals cannot be excluded from the consumption of goods and services regardless of whether they pay for them. B) the government does not own any resource used in production in an economy. C) individuals can own businesses and assets, and their ownership is secure. D) individuals have a right to elect their representatives in the government. 16 112) Consider two countries-country A and B. Both economies are exactly similar in all aspects except for one. There are well-defined property rights in country A, while there are no property rights in country B. Given this information, which of the following statements is likely to be true? 112) A) Economy A is likely to grow faster than economy B. B) Economy B is likely to grow faster than economy A. C) Both economies are likely to grow at the same rate. D) None of the countries is likely to experience any growth in GDP

Answer 1