Which of the following statements correctly identifies an advantage of using foreign aid to eradicate poverty?
A) It leads to a redistribution of income around the world.
B) It is extremely efficient in countries where institutions are extractive.
C) It directly increases the efficiency of production in poorer countries.
D) Its flow is transparent and can be questioned by all individuals in the receiving country.

Question

Quizplus · Accepted Answer

Foreign aid can lead to a redistribution of income around the world by transferring resources from wealthier countries to poorer ones, helping to address global income disparities.

Which of the Following Statements Correctly Identifies an Advantage of Using