Asked by logan brockway on Jul 23, 2024
Verified
The government's role in a developing country is important during the country's development process for all of the following reasons except
A) building social overhead capital cannot successfully be taken on by the private sector.
B) building infrastructure is a huge project that only the government can undertake.
C) many social projects are associated with the free-rider problem, which minimizes the rate of return to the private sector.
D) the government is the only institution with a vested interest in a country's development.
Social Overhead Capital
Basic infrastructure projects such as roads, power generation, and irrigation systems.
Developing Country
A nation with a lower level of material wealth, industrialization, and human development index compared to developed countries.
Free-Rider Problem
A problem intrinsic to public goods: Because people can enjoy the benefits of public goods whether or not they pay for them, they are usually unwilling to pay for them.
- Understand the role of government and international aid in the development process of developing countries.
Verified Answer
KE
Kylie EllisJul 23, 2024
Final Answer :
D
Explanation :
The government is not the only institution with a vested interest in a country's development. Private sector entities, non-governmental organizations (NGOs), international bodies, and community organizations also have significant interests in a country's development. The other options (A, B, C) correctly identify roles that are often more effectively or necessarily undertaken by the government due to the scale, public good nature, or externalities involved.
Learning Objectives
- Understand the role of government and international aid in the development process of developing countries.