Question 1

Tatiana lived in Mexico between 1950 and 1970. When telling her children about her experience growing up in Mexico, what would she be saying to them?

Accepted Answer

Between 1950 and 1970, Mexico experienced a period of economic growth that was largely driven by the oil industry. However, this growth was not distributed equally and as a result, there was a widening gap between the rich and the poor. Tatiana would likely have experienced this inequality and would have shared her experiences of seeing some people become very wealthy while many others struggled with poverty. Option A is incorrect as poverty was still prevalent despite the economic growth. Option C is incorrect as it is an overgeneralization. Option D is incorrect as neoliberal policies were not yet implemented during this period.

Question 2

Once it became politically impossible for the United States to provide military aid, training, and support for Guatemala and its pro-American regime, which country stepped in to help?

Accepted Answer

Israel was one of the few countries that continued to provide military aid and training to Guatemala during the 1980s, despite the United States' decision to withdraw its support. Israel saw Guatemala as a potential ally in the fight against communism and provided weapons, ammunition, and intelligence support to the Guatemalan military.

Question 3

The government of Country X is fighting a popular rebellion against the president's oppressive policies. The United States is sending military aid to the government because of its economic interests in Country X. According to the text, how could this situation influence development in the country?

Accepted Answer

Military aid in a situation of conflict can divert resources and attention away from economic development. The focus on war and fighting can cause neglect of infrastructure, education, healthcare, and other aspects that are necessary for economic growth. Therefore, military aid can actually hinder development in the long term.

Question 4

Since 2000, a number of Central and South American countries have elected antineoliberalist governments. How has this sentiment been reflected in their economic development plans?

Accepted Answer

Many Central and South American countries that have elected antineoliberalist governments have nationalized key resource industries such as oil and gas, mining, and telecommunications. This is seen as a way to assert greater control over the economy and redistribute wealth.

Question 5

What U.S. foreign policy between the 1950s and the 1970s had a big impact on the development of Third World nations?

Accepted Answer

During this time period, the United States followed a policy of supporting authoritarian regimes in Third World nations if they were seen as being anti-communist, even if they were undemocratic and oppressive to their own people. This had a significant impact on the development of these nations, as their economies and political systems were often geared towards serving the interests of the United States and its allies rather than the needs of their own citizens. This also led to a backlash against the U.S. and increased support for anti-American movements and leaders in many parts of the world.

Question 6

Which of the following strategies was employed by the United States in relation to Latin America from the 1950s to 1970s?

Accepted Answer

The United States employed a strategy of supporting military coups d'etat in Latin America during the Cold War era, in order to prevent the spread of communist influence in the region. This strategy was particularly active in the 1950s to 1970s, with American support for coups and military dictatorships in countries such as Guatemala, Cuba, Chile, and Argentina.

Question 7

What is the ratio of the world's poorest 5 percent compared to the world's richest 5 percent?

Accepted Answer

According to a 2019 report by Oxfam, the world's richest 26 billionaires have a combined wealth equivalent to that of the poorest 50% of the world's population. This means that the ratio of the world's poorest 5% to the world's richest 5% is even greater than 26:100, which is equivalent to 13:50 or roughly 165:1. Therefore, option D is the correct answer.

Question 8

If the world's population were to shrink to 100 people, which of the following proportional statements would reflect the social condition of those 100 people?

Accepted Answer

The answer of If the world's population were to shrink...

Question 9

Samir always struggled to make enough money for his family to live on and was aware of wealth differences, especially when he compared himself to Evelyn, the owner of the factory where he worked. However, in the 1970s, he became aware that the gap between himself and Evelyn was growing. In addition to transnational corporations and technological advancements, what factor added to the widening income gap?

Accepted Answer

The introduction of neoliberal policies, which prioritize privatization, deregulation, and free trade, has been linked to the widening income gap. These policies often benefit the wealthy and corporations at the expense of workers and the poor.

Question 10

Minimal state involvement with the economy and development is a core neoliberal belief. What does the text conclude about the countries where rapid development has occurred in the global south?

Accepted Answer

The text concludes that countries with specific government plans and restrictions experienced the most growth, indicating that state involvement played a significant role in their development.

Question 11

What was the domino theory?

Accepted Answer

The domino theory was a Cold War-era belief that if one country fell under communist influence or control, then neighboring countries would soon follow in a domino effect. This belief led the United States to intervene in several conflicts during the Cold War, including the Vietnam War, in an attempt to prevent the spread of communism.

Question 12

The "Asian Tigers" (South Korea, Taiwan, Hong Kong, and Singapore) have experienced rapid growth and industrialization in recent decades. Which of the following explains their successful development?

Accepted Answer

The "Asian Tigers" experienced rapid growth through state-led economic strategies, where governments played a significant role in directing economic development, investing in education, and promoting export-oriented industries.

Question 13

How have countries such as Argentina, Ecuador, Venezuela, Bolivia, and Brazil worked on their economic development goals?

Accepted Answer

These countries have worked on their economic development goals by assisting landless peasants and the rural poor through policies such as redistributive land reform, social programs, and public investment in infrastructure. They have prioritized reducing poverty and inequality as a means of promoting economic growth, rather than following neoliberal or IMF/WB policies that may not address these issues.

Question 14

The International Comparison Project undertook an extensive analysis of price levels in most Asian countries. Which of the following reflects the conclusion of this work?

Accepted Answer

The question states that the International Comparison Project analyzed price levels in most Asian countries. Therefore, the conclusion of this work would be specific to price levels in Asia. Option A is incorrect because the question does not mention how inflation affects the poor's purchasing power. Option B is incorrect because it states that price levels were lower than anticipated, which is not a conclusion that can be drawn without knowing what was anticipated. Option D is incorrect because it assumes that wage increases matched inflation, which is not stated in the question. Therefore, the correct answer is C- price levels in Asia were higher than anticipated.

Question 15

Structural adjustment programs (SAPs), sponsored by the World Bank and the International Monetary Fund, were introduced to assist with economic growth in the global south. What kind of successes have these programs had?

Accepted Answer

Studies have shown that growth rates were higher in the decade prior to the introduction of SAPs. This suggests that the programs have not been particularly successful in achieving economic growth in the global south.

Question 16

In which time spans did inequality between the rich and the poor decrease, and which policies had an impact on these changes?

Accepted Answer

In the 1930s-1960s, there was a decrease in inequality between the rich and the poor, largely due to the implementation of Keynesian policies. These policies focused on increasing government spending and reducing unemployment, which helped to redistribute wealth and reduce income inequality. It is worth noting that some scholars also argue that the New Deal policies implemented in the 1930s played a role in reducing inequality during this period.

Question 17

After the introduction of neoliberal policies in the 1970s, what happened to Third World countries and their levels of social inequality?

Accepted Answer

After the introduction of neoliberal policies, Third World countries experienced a substantial increase in social inequality. These policies led to a reduction in state intervention, privatization of state-owned resources, and deregulation of markets, causing a shift in economic power towards the wealthy and leaving the poor further behind. The gap between the rich and the poor widened, leading to an increase in poverty and income inequality.

Question 18

A major research study involving 38 percent of the world's population in developing countries concluded that prices in these countries were much higher than expected. What are the implications of these higher costs in those areas?

Accepted Answer

The higher costs in developing countries imply that inequality is increasing. These higher prices disproportionately affect those with lower incomes, leading to a widening gap between the rich and poor. Additionally, higher prices may limit access to essential goods and services for those living in poverty.

Question 19

What consequence did the countries in the global south experience as a result of international lending agencies imposing SAPs?

Accepted Answer

Structural Adjustment Programs (SAPs) often led to austerity measures that hindered economic growth, resulting in stagnation rather than growth in many countries in the global south during that period.

Question 20

Sara needs to work to ensure that her children have a good life and receive a good education at a private school. However, she cannot find work in her country that will meet her economic needs and she must travel to a more developed country and send money home. This situation is an indication that a government policy has failed to deliver its economic promise. Which policy is it?

Accepted Answer

Neoliberalism is a policy that promotes free-market capitalism and reduces government regulation in the economy. It can lead to unequal distribution of wealth and benefits for the wealthy while leaving the poor struggling to meet their basic needs. In this scenario, the failure of the government to provide job opportunities that meet economic needs led Sara to travel to a more developed country and send money home. This highlights the inadequacy of the neoliberal policy in delivering economic promises.

Quiz 9: Development and Underdevelopment