Question 1

Programs that require people to pay into a common pool and are in turn eligible to draw on benefits under certain circumstances are called:

Accepted Answer

A)  social insurance programs.
B)  social benefit programs.
C)  common insurance programs.
D)  equitable payment programs.E) A) and B)
F) A) and C)

Question 2

If we compare income mobility in absolute terms,we would measure whether a person's income:

Accepted Answer

A)  is higher than her parents' income.
B)  places her higher up in the income distribution than her parents' income.
C)  is higher at the end of her career compared to the beginning.
D)  places her higher up in the income distribution over the course of her work-life.E) A) and B)
F) None of the above

Question 3

An example of a social insurance program offered in the United States is:

Accepted Answer

A)  unemployment insurance.
B)  Social Security.
C)  Medicare.
D)  All of these are examples of social insurance programs.E) A) and B)
F) A) and D)

Question 4

Inequality between countries,in terms of differences in their average national incomes,has been:

Accepted Answer

A)  decreasing over recent decades.
B)  increasing over recent decades.
C)  decreasing since the 1930s.
D)  increasing since the 1930s.E) A) and D)
F) All of the above

Question 5

The Gini coefficient measures:

Accepted Answer

A)  income inequality.
B)  poverty prevalence.
C)  average income per person.
D)  change in average income per person over time.E) A) and D)
F) All of the above

Question 6

The $1.25 (PPP) per day line was chosen by averaging the national poverty lines of 15 poor countries to represent:

Accepted Answer

A)  absolute poverty by some globally comparable standard.
B)  chronic poverty by some globally comparable standard.
C)  transient poverty by some globally comparable standard.
D)  relative poverty by some globally comparable standard.E) A) and B)
F) None of the above

Question 7

The bottom quintiles of income earners in every country today:

Accepted Answer

A)  earns disproportionately more than the top quintile.
B)  earns disproportionately less than they did 100 years ago.
C)  earns disproportionately more than the middle quintile.
D)  None of these is true.E) B) and C)
F) C) and D)

Question 8

Most of Europe has relatively _______ inequality,and much of Latin America and southern Africa has relatively _________ inequality.

Accepted Answer

A)  low;high
B)  low;low
C)  high;high
D)  high;lowE) C) and D)
F) None of the above

Question 9

When the U.S.experiences economic growth,the poverty rate will:

Accepted Answer

A)  fall,because growth has benefited everyone.
B)  increase,because growth typically only benefits the richest 1 percent.
C)  fall,because growth typically helps the poor more than the wealthy.
D)  increase,because growth has benefited the wealthy more than the poor.E) A) and B)
F) A) and C)

Question 10

Economists collect data on prices in every country and develop an index that describes the overall difference in prices between countries called the:

Accepted Answer

A)  purchasing power parity index.
B)  price parity purchasing index.
C)  consumer price index.
D)  consumer purchasing power index.E) A) and D)
F) C) and D)

Question 11

Overall,rapid economic growth has ______ the global poverty rate from __________________.

Accepted Answer

A)  decreased;above 50 percent to below 25 percent
B)  increased;below 25 percent to above 50 percent
C)  decreased;above 30 percent to below 15 percent
D)  increased;below 15 percent to above 25 percentE) B) and C)
F) A) and B)

Question 12

Skill-biased technical change is:

Accepted Answer

A)  economic growth that derives from,and therefore benefits disproportionally,the highly-skilled,highly educated workers in a society.
B)  the change in technology that has caused many jobs to shift away from the service sector to the technology sector.
C)  the changing makeup of workforces in countries with large amounts of technology.
D)  None of these is true.E) B) and C)
F) All of the above

Question 13

The poverty rate is defined as:

Accepted Answer

A)  the percentage of the population that falls below the absolute poverty line.
B)  the percentage of the population that falls below the relative poverty line.
C)  the percentage of low income earners to high income earners.
D)  the lowest one percent of all income earners.E) None of the above
F) B) and D)

Question 14

Average income for adults still varies widely across gender and racial groups in the United States,which tells us:

Accepted Answer

A)  income is correlated with race and gender.
B)  race and gender differences cause differences in income.
C)  discrimination causes differences in income across race and gender groups.
D)  All of these are true.E) None of the above
F) All of the above

Question 15

The _________ bowed inward the Lorenz curve is,the __________ inequality exists.

Accepted Answer

A)  more;more
B)  less;more
C)  more;less
D)  None of these is true.E) B) and C)
F) All of the above

Question 16

Which of the following countries has lower income mobility than the United States?

Accepted Answer

A)  United Kingdom
B)  Germany
C)  Neither of these countries have lower income mobility than the United States.
D)  Both of these countries have lower income mobility than the United States.E) B) and C)
F) A) and C)

Question 17

Income mobility is:

Accepted Answer

A)  the ability to improve one's economic circumstances over time.
B)  how much income is stored in offshore banks.
C)  how likely the income associated with each job in the country will change in relative terms.
D)  how likely the income associated with each job in the country will increase over time.E) B) and C)
F) A) and D)

Question 18

The Gini coefficient is calculated by measuring the area between:

Accepted Answer

A)  the line of perfect equality and the Lorenz curve.
B)  the line of perfect inequality and the Lorenz curve.
C)  the Lorenz curve and the x-axis.
D)  the Lorenz curve and the y-axis.E) None of the above
F) A) and B)

Question 19

Income mobility tells us:

Accepted Answer

A)  how available the opportunity to better oneself is in the economy.
B)  how likely people are to seek out opportunities to better themselves.
C)  the inflation rate associated with wages across all jobs in a country.
D)  the inflation rate relative to the cost of living in a country.E) A) and B)
F) A) and D)

Question 20

The international poverty line at $1.25 a day at purchasing power parity means that in each country the poverty line is the amount that will allow you to buy a basket of goods equivalent to what $1.25 would buy:

Accepted Answer

A)  in the United States.
B)  in the richest of the countries that uses the index.
C)  in the poorest of the countries that uses the index.
D)  in the average economy of all the countries that use the index.E) All of the above
F) None of the above

Exam 21: Poverty, Inequality, and Discrimination

Income mobility tells us:

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The Gini coefficient is calculated by measuring the area between:

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The _________ bowed inward the Lorenz curve is,the __________ inequality exists.

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Overall,rapid economic growth has ______ the global poverty rate from __________________.

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If we compare income mobility in absolute terms,we would measure whether a person's income:

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Most of Europe has relatively _______ inequality,and much of Latin America and southern Africa has relatively _________ inequality.

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The Gini coefficient measures:

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When the U.S.experiences economic growth,the poverty rate will:

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An example of a social insurance program offered in the United States is:

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Economists collect data on prices in every country and develop an index that describes the overall difference in prices between countries called the:

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Skill-biased technical change is:

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The bottom quintiles of income earners in every country today:

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Which of the following countries has lower income mobility than the United States?

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The $1.25 (PPP) per day line was chosen by averaging the national poverty lines of 15 poor countries to represent:

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Income mobility is:

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The poverty rate is defined as:

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The international poverty line at $1.25 a day at purchasing power parity means that in each country the poverty line is the amount that will allow you to buy a basket of goods equivalent to what $1.25 would buy:

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Average income for adults still varies widely across gender and racial groups in the United States,which tells us:

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Programs that require people to pay into a common pool and are in turn eligible to draw on benefits under certain circumstances are called:

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Inequality between countries,in terms of differences in their average national incomes,has been:

Correct AnswerverifiedShow Answer

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The _ bowed inward the Lorenz curve is,the __ inequality exists.

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Overall,rapid economic growth has the global poverty rate from ____________.

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Most of Europe has relatively _ inequality,and much of Latin America and southern Africa has relatively ___ inequality.

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