Question 1

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Iraq,motivations for aid

Accepted Answer

Iraq:
Iraq is a country located in the Middle East, bordered by countries such as Iran, Turkey, Syria, Jordan, and Kuwait. It has a rich history, being part of the ancient Mesopotamian civilization, which is often referred to as the cradle of civilization. In more recent history, Iraq has been at the center of significant geopolitical events, including the Iran-Iraq War in the 1980s, the Gulf War in the early 1990s following Iraq's invasion of Kuwait, and the 2003 Iraq War led by the United States and its allies that resulted in the overthrow of Saddam Hussein's regime. The country has vast oil reserves, which are a major component of its economy and global importance.

Motivations for Aid:
Aid to a country can be motivated by a variety of factors, including humanitarian concerns, strategic interests, economic benefits, and diplomatic relations. Humanitarian aid is often provided in response to crises such as natural disasters, famine, or war, with the goal of saving lives, alleviating suffering, and maintaining human dignity. Strategic aid, on the other hand, is given to further the donor country's geopolitical interests, such as securing alliances, stabilizing regions, or countering the influence of rival powers. Economic aid can be aimed at developing trade partnerships or investing in resources and markets that benefit the donor country. Diplomatic aid is used to strengthen bilateral relations and can be a tool for promoting certain political or social reforms.

Relationship between Iraq and Motivations for Aid:
The relationship between Iraq and motivations for aid is multifaceted. Following the 2003 invasion and subsequent conflicts, Iraq has received significant amounts of aid from various countries and international organizations. The motivations behind this aid have been diverse:

1. Humanitarian Concerns: Iraq has faced humanitarian crises due to war, internal displacement, and the fight against extremist groups like ISIS. Aid organizations and countries have provided assistance to address the immediate needs of the affected populations, such as food, shelter, medical care, and rebuilding infrastructure.

2. Strategic Interests: Countries, particularly the United States and its allies, have had strategic interests in stabilizing Iraq to prevent it from becoming a haven for terrorist groups and to ensure regional security. Aid has been used to support the Iraqi government, train security forces, and rebuild institutions.

3. Economic Benefits: Iraq's vast oil reserves make it an economically significant country. Some countries provide aid to foster good relations that can lead to advantageous oil contracts and investment opportunities.

4. Diplomatic Relations: Aid has been used as a diplomatic tool to influence the political direction of Iraq, support the establishment of a democratic government, and encourage the protection of human rights and the rule of law.

In summary, the motivations for providing aid to Iraq have been driven by a combination of humanitarian impulses, strategic calculations, economic interests, and diplomatic objectives. The relationship between Iraq and motivations for aid reflects the complexity of international relations and the various interests that can influence foreign policy decisions.

Question 2

Aid has helped in all of the following areas except:
A) health.
B) education.
C) emergency assistance.
D) stimulating tax revenue.

Accepted Answer

Aid can support and improve health, education, and provide emergency assistance, but it typically does not directly stimulate tax revenue. However, aid can indirectly contribute to a stronger economy that generates more taxes and increases revenue for the government.

Question 3

Surveys indicate that the U.S.public believes the United States spends how much of its budget on aid?
A) 1 percent
B) 5 percent
C) 10 percent
D) 20 percent

Accepted Answer

Surveys often show that the U.S. public overestimates the amount of the federal budget spent on foreign aid, with many thinking it is as high as 20 percent, whereas in reality, it is less than 1 percent.

Question 4

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Official development assistance (ODA),Development Assistance Committee (DAC)

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 5

Primarily,the World Bank provides:
A) foreign aid.
B) loans to middle-income countries at market rates.
C) investment in private companies.
D) settlement of international disputes.

Accepted Answer

The World Bank primarily provides loans to middle-income countries at market rates to promote economic development and reduce poverty. While the World Bank may also provide some foreign aid and investment in private companies, these activities are secondary to their loan programs. The World Bank is not involved in the settlement of international disputes.

Question 6

True or False: Being a former colony substantially increases the probability of receiving aid flows.
A) True
B) False
C) True only for former colonies of Great Britain
D) True only for older colonies

Accepted Answer

Being a former colony does increase the probability of receiving aid flows as evidenced by the fact that many former colonies receive significant amounts of aid today. However, this is not limited to any particular former colonizer or time period.

Question 7

Beginning in 2002,which country became the largest aid recipient in the world?
A) Iraq
B) Iran
C) Vietnam
D) India

Accepted Answer

In 2002, the United States launched the Iraq War and subsequently, Iraq became the largest aid recipient in the world.

Question 8

When the U.S.government provides a grant to build an electricity generator:
A) it counts as foreign aid.
B) it does not count as foreign aid.
C) it depends; sometimes it counts as foreign aid.
D) it counts as private assistance.

Accepted Answer

The answer of When the U.S.government provides a grant to...

Question 9

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Foreign aid,nonconcessional assistance

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 10

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Commitment to development index,foreign aid

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 11

A loan counts as aid if it has a grant element of at least:
A) 10 percent.
B) 25 percent.
C) 50 percent.
D) none of the above; it never counts as a grant.

Accepted Answer

According to the Organisation for Economic Co-operation and Development (OECD), a loan can only count as aid if it has a grant element of at least 25 percent. The grant element is the amount of the loan that does not need to be repaid and is essentially a form of aid. Therefore, option B is the correct answer.

Question 12

A study on the flypaper effect in Indonesia revealed that aid:
A) crowded out government spending.
B) crowded in government spending.
C) was neutral to government spending.
D) was harmful to government spending.

Accepted Answer

The flypaper effect suggests that aid or grants from higher levels of government to lower levels tend to stick where they hit, meaning they lead to increased spending by the receiving government rather than being fully substituted for local revenue sources. Therefore, in the context of Indonesia, if the study found the flypaper effect, it implies that aid crowded in government spending, meaning it led to an increase in government spending rather than reducing or being neutral to it.

Question 13

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Bilateral assistance,multilateral assistance

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 14

Aid falls to about 50 percent of its peak level after:
A) 6 years.
B) 12 years.
C) 18 years.
D) 24 years.

Accepted Answer

According to the given information, aid falls to about 50 percent of its peak level after a certain number of years. Therefore, we can use the concept of exponential decay to find the time it takes for aid to reduce to half its peak level. The half-life of exponential decay is the time it takes for the quantity to reduce to half its value. In this case, the half-life can be calculated using the formula: t(half) = ln(2) / lambda, where lambda is the decay constant. Since we don't have the value of lambda, we cannot calculate the exact half-life. However, we can use the given answer choices to estimate the time it takes for aid to fall to half its peak level. Among the given options, B) 12 years seems the most reasonable as it is the midpoint between the choices and is a reasonable time period for aid to decline. Therefore, the answer is B) 12 years.

Question 15

As aid increases,GDP growth:
A) increases.
B) decreases.
C) stays the same.
D) none of the above; there is no definite relationship between the two.

Accepted Answer

There is no definite relationship between aid and GDP growth. While aid can have a positive impact on economic growth and development, there are also cases where aid has been found to have little to no impact or to even hinder economic growth. The impact of aid on GDP growth depends on various factors such as the effectiveness of aid delivery, the recipient country's economic policies and institutions, and the nature of the aid itself. Therefore, we cannot definitively say that aid will always increase, decrease or have no effect on GDP growth.

Question 16

In terms of total amount,which country gives the most aid?
A) United States
B) Japan
C) United Kingdom
D) Norway

Accepted Answer

According to OECD data for 2019, the United States gave the most aid in terms of total amount, with a total of $34.3 billion in official development assistance. Japan was the second-largest donor with $14.3 billion, followed by Germany with $12.8 billion, the United Kingdom with $12.2 billion, and France with $10.7 billion. Therefore, option A is the correct answer.

Question 17

When Citibank provides a commercial loan to build an electricity generator:
A) it counts as foreign aid.
B) it does not count as foreign aid.
C) it depends; sometimes it counts as foreign aid.
D) it counts as private assistance.

Accepted Answer

Citibank providing a commercial loan to build an electricity generator does not count as foreign aid. Foreign aid refers to financial assistance provided by one country to another to promote economic development or to alleviate poverty. In this case, it is a private transaction between the bank and the borrower, and not part of any foreign aid program or initiative.

Question 18

Most aid has been given:
A) bilaterally.
B) multilaterally.
C) through private organizations.
D) through individuals.

Accepted Answer

The majority of aid given is done so bilaterally, which means that one government is directly giving aid to another government or organization. This has been the traditional way of giving aid and the method that is most commonly used by governments around the world. Multilateral aid, which is given through organizations like the UN or World Bank, is also significant, but still makes up a smaller portion of aid giving. Aid given through private organizations or individuals is important, but it is not as common or significant as aid given by governments.

Question 19

In terms of aid as a percentage of GNI,which country gives the most aid?
A) United States
B) Japan
C) United Kingdom
D) Sweden

Accepted Answer

Sweden gives the most aid as a percentage of its Gross National Income (GNI), with 1.14% of its GNI going towards aid. The United States, Japan, and United Kingdom give smaller percentages of their GNI towards aid, with the United States giving the least at 0.17%.

Question 20

When the U.S.government provides a grant to purchase military equipment:
A) it counts as foreign aid.
B) it does not count as foreign aid.
C) it depends; sometimes it counts as foreign aid.
D) it counts as private assistance.

Accepted Answer

Military equipment grants provided by the U.S. government are considered as security assistance or military aid, rather than foreign aid, as the primary purpose is to enhance the defense capabilities of the recipient country rather than to address development or humanitarian needs. Foreign aid, on the other hand, is aimed at promoting economic, social, or political development in recipient countries.

Quiz 14: Foreign Aid

Aid has helped in all of the following areas except:

Surveys indicate that the U.S.public believes the United States spends how much of its budget on aid?

Primarily,the World Bank provides:

True or False: Being a former colony substantially increases the probability of receiving aid flows.

Beginning in 2002,which country became the largest aid recipient in the world?

When the U.S.government provides a grant to build an electricity generator:

A loan counts as aid if it has a grant element of at least:

A study on the flypaper effect in Indonesia revealed that aid:

Aid falls to about 50 percent of its peak level after:

As aid increases,GDP growth:

In terms of total amount,which country gives the most aid?

When Citibank provides a commercial loan to build an electricity generator:

Most aid has been given:

In terms of aid as a percentage of GNI,which country gives the most aid?

When the U.S.government provides a grant to purchase military equipment: