Question 1

Which of the following is not a way for industrially advanced countries (IACs)to help developing countries (DVCs)achieve faster economic growth?

Accepted Answer

Subsidizing their own agricultural sectors may harm the agricultural industries of developing countries by artificially lowering the cost of products in industrialized countries, making it harder for DVCs to compete. Expanding trade, admitting more temporary workers, and discouraging arms sales can all offer assistance and benefits to DVCs in achieving faster economic growth.

Question 2

One of the major objectives of the World Bank is to

Accepted Answer

The World Bank's primary objective is to provide financial and technical assistance to developing countries for development programs (e.g., bridges, roads, schools, etc.) that are expected to improve the economic prospects and quality of life for people in those countries.

Question 3

Microfinance or microcredit can help directly support

Accepted Answer

Microfinance or microcredit primarily aims to support entrepreneurs, especially those in developing countries or underprivileged communities, by providing them with small loans to start or expand their businesses.

Question 4

Microcredit refers to

Accepted Answer

Microcredit refers to providing small-scale loans to low-income individuals, especially to entrepreneurs who do not have access to traditional banking services. These loans are usually given for starting and expanding small businesses. Therefore, option B is the correct choice. The other options are not related to microcredit.

Question 5

Which two of the following countries had the worst score in the Corruption Perceptions Index in 2015?

Accepted Answer

According to the Corruption Perceptions Index 2015, Somalia and Afghanistan had the worst score of 8 out of 100, indicating very high levels of corruption. Italy and Greece had a score of 44 and 46 respectively, China and Singapore had a score of 37 and 85 respectively, and Mexico and Russia had a score of 35 and 29 respectively.

Question 6

Most of the flow of foreign aid goes to

Accepted Answer

Most of the flow of foreign aid does not necessarily target the poorest populations or countries. Instead, it often benefits the more affluent segments within developing countries, due to factors such as political interests, strategic alliances, and the capacity of those segments to utilize the aid effectively.

Question 7

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

Accepted Answer

The International Development Association (IDA), which is a part of the World Bank Group, provides soft loans (loans with very low interest rates and long repayment periods) to the poorest of the developing countries. These loans are often used for projects that may not be self-liquidating, such as education or healthcare programs. Therefore, option D is the correct choice. Option A and C are incorrect because the United Nations and New Global Compact do not have the primary function of providing loans. Option B is incorrect because the International Finance Corporation provides loans to private companies, not to the poorest developing countries.

Question 8

In recent years, many DVCs have come to realize that

Accepted Answer

Many DVCs have recognized that private capital investment, whether it be through foreign direct investment or domestic entrepreneurship, is crucial for long-term economic growth. These investments can bring in new technologies, create jobs, and drive economic expansion. Without it, DVCs are left struggling to develop economically without adequate resources.

Question 9

The World Bank operates primarily as a

Accepted Answer

The World Bank primarily operates as a lender of last resort to less-developed nations, providing them with financial and technical assistance to promote economic development and reduce poverty.

Question 10

Industrially advanced countries can best help DVCs by

Accepted Answer

Adopting policies that expand trade with DVCs can help them improve their economies and increase their standard of living. This can include reducing trade barriers, providing technical assistance and training, and creating incentives for foreign investment. This approach can lead to sustainable growth in DVCs, rather than just providing temporary aid or handouts.

Question 11

Development experts are less enthusiastic than they used to be about three decades ago about the positive role of DVC governments in promoting economic growth in their less-developed nations because of the

Accepted Answer

Corruption in government has been a significant concern, undermining the effectiveness of DVC (Developing and Vulnerable Countries) governments in promoting economic growth. Corruption diverts resources, discourages investment, and can lead to inefficient allocation of resources, all of which hinder economic development.

Question 12

Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?

Accepted Answer

The World Bank is the primary international organization that makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools. The New Economic Order is not an organization, but rather a set of proposed economic reforms. The Federal Reserve System is the central banking system of the United States and does not specifically focus on loans to developing nations. The Committee on Economic Development is a nonprofit, nonpartisan organization focused on promoting sustainable economic growth and development in the United States.

Question 13

Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by

Accepted Answer

Reducing trade barriers and increasing the amount of private and public capital can help developing nations by providing them with more opportunities for trade and investment, which can stimulate economic growth and development.

Question 14

Industrially advanced countries can help developing countries by

Accepted Answer

Increasing the flows of private capital to developing countries (DVCs) can help by providing the necessary funds for investment in infrastructure, businesses, and other areas that can stimulate economic growth and development.

Question 15

The World Bank seeks to

Accepted Answer

The World Bank's primary mission is to assist developing countries through loans, grants, and advice to achieve economic growth and reduce poverty.

Question 16

Which two of the following countries had the best score in the Corruption Perceptions Index in 2015?

Accepted Answer

According to the Corruption Perceptions Index in 2015, Denmark and Singapore had the top scores for the least corrupt countries. Japan and Spain were ranked 18th and 36th, respectively. China and Russia were ranked 83rd and 119th, respectively. The United States and Canada were ranked 16th and 9th, respectively, but not as high as Denmark and Singapore.

Question 17

A large portion of foreign aid from IACs to DVCs is provided on the basis of

Accepted Answer

The answer of A large portion of foreign aid from...

Question 18

Many of the major projects of the World Bank have been for

Accepted Answer

The World Bank is focused on providing financial and technical assistance to DVCs with the aim of reducing poverty and promoting economic growth. One of the key ways in which it does this is by funding projects that support the development of infrastructure such as transportation, water supply, and energy. These projects aim to improve the quality of life for people in DVCs and create opportunities for economic growth. While the World Bank may provide loans to private citizens in some cases, this is not its primary focus. It also does not typically supervise banking systems or establish tax systems for governments in DVCs.

Question 19

The role of government in fostering economic growth in DVCs has been criticized because

Accepted Answer

The role of government in fostering economic growth in DVCs has been criticized because there is often poor administration and corruption in government. This can lead to misallocation of resources and hinder economic growth rather than foster it.

Question 20

Which of the following IACs (industrially advanced countries)was the leading provider of development assistance to DVCs (developing countries)in 2017, in terms of absolute dollar amounts?

Accepted Answer

The United States has historically been one of the largest providers of development assistance globally, including in 2017, when it contributed the most in absolute dollar amounts compared to other industrially advanced countries.

Quiz 28: The Economics of Developing Countries

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?