Question 1

The poverty rate is defined as:

Accepted Answer

A)   the percentage of the population that falls below the relative poverty line.
B)   the percentage of the population that falls below the absolute poverty line.
C)   the percentage of low income earners to high income earners.
D)   the lowest one percent of all income earners.E) B) and C)
F) C) and D)

Question 2

The greatest number of people who live on $1.90 a day live in:

Accepted Answer

A)   China.
B)   South Asia.
C)   sub-Saharan Africa.
D)   None of these is true.E) C) and D)
F) A) and D) B

Question 3

In the last few decades,the poverty rate in the US has

Accepted Answer

A)   increased.
B)   decreased.
C)   changed little.
D)   may have increased or decreased, we do not know for certain.E) A) and B)
F) A) and C) C

Question 4

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) All of the above
F) A) and B)

Question 5

Evidence shows that children from poor communities typically have:

Accepted Answer

A)   increased opportunities to acquire human capital.
B)   reduced opportunities to acquire human capital.
C)   equal opportunities to acquire human capital, but choose not to acquire as much on average than others.
D)   equal opportunities to acquire human capital, and choose to acquire more on average than others.E) A) and D)
F) A) and C)

Question 6

A plan to revitalize the downtown area of a struggling city would fulfill which of the following goals to address poverty and inequality?

Accepted Answer

A)   Economic development
B)   Safety nets
C)   Redistribution
D)   None of these is true.E) All of the above
F) A) and B)

Question 7

Retirement benefits are less like __________,and more like _____________

Accepted Answer

A)   social insurance programs; social savings programs.
B)   private insurance; collective savings program.
C)   savings programs; private insurance.
D)   None of these is true.E) A) and D)
F) B) and C)

Question 8

As of 2010,the Gini coefficient was 33.9 in India and 40.8 in the United States.We can interpret this to mean that inequality:

Accepted Answer

A)   is greater in India than the United States.
B)   is greater in the United States than in India.
C)   is about the same in the two countries.
D)   is not a problem in either country.E) A) and D)
F) B) and C)

Question 9

If the U.S.population were split into quintiles based on income,with the lowest quintile representing the poorest 20 percent,then those who earned the median income for the United States would be in the:

Accepted Answer

A)   second quintile.
B)   third quintile.
C)   fourth quintile.
D)   fifth quintile.E) B) and C)
F) A) and B)

Question 10

Self- reinforcing mechanisms that cause the poor to stay poor are called:

Accepted Answer

A)   social aberrances.
B)   social networks.
C)   poverty traps.
D)   societal traps.E) B) and D)
F) B) and C)

Question 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

In the last few decades,income inequality in the United States has ___________ mostly because of the ____________

Accepted Answer

A)   increased; poor getting poorer.
B)   increased; gains by the rich.
C)   decreased; gains by the poor.
D)   decreased; stagnation by the economy in general.E) B) and C)
F) A) and B)

Question 14

Conditional cash transfer programs are programs in which:

Accepted Answer

A)   financial support is given only to people who engage in certain actions.
B)   financial support is given only to people who have paid into the program for a minimum amount of time.
C)   financial support is given only to people who agree to pay it back at reduced interest to the government in the future.
D)   None of these is true.E) B) and D)
F) A) and D)

Question 15

Most countries in the world have Gini coefficients ranging from:

Accepted Answer

A)   0.20 to 0.85.
B)   0.25 to 0.60.
C)   0.10 to 0.50.
D)   0.30 to 0.40.E) B) and D)
F) A) and B)

Question 16

One of the factors that causes differences in inequality across countries is:

Accepted Answer

A)   the extent to which governments redistribute income through the public budget.
B)   the amount of jobs that are available in the country.
C)   the labor force participation rate within countries.
D)   how many income earners there are relative to total population.E) None of the above
F) C) and D)

Question 17

According to economist Emmanuel Saez,between 1993 and 2010,the incomes of the richest 1 percent grew by ________,and the other 99 percent grew by ________ on average.

Accepted Answer

A)   58 percent; 64 percent
B)   5.8 percent; 6.4 percent
C)   58 percent; 6.4 percent
D)   5.8 percent; 64 percentE) All of the above
F) A) and B)

Question 18

Community-wide poverty:

Accepted Answer

A)   is nonexistent in the developed world.
B)   creates problems beyond those faced by poor individuals living in wealthier communities.
C)   only creates problems in less wealthy countries.
D)   None of these is true.E) None of the above
F) A) and B) B

Question 19

Does low human capital cause poverty or does poverty cause low human capital?

Accepted Answer

A)   The causality works both ways.
B)   Low human capital causes poverty, not the other way around.
C)   Poverty causes low human capital, not the other way around.
D)   There is no causal link between low human capital and poverty.E) B) and D)
F) A) and B)

Question 20

Which of the following could be considered a goal of policy to address poverty and inequality?

Accepted Answer

A)   Economic development
B)   Safety nets
C)   Redistribution
D)   All of these are goals of policy to address poverty and inequality.E) A) and B)
F) A) and C)

Exam 21: Poverty, Inequality, and Discrimination

The poverty rate is defined as:

Correct AnswerverifiedShow Answer

The greatest number of people who live on $1.90 a day live in:

Correct AnswerverifiedB

In the last few decades,the poverty rate in the US has

Correct AnswerverifiedC

The Gini coefficient measures:

Correct AnswerverifiedShow Answer

Evidence shows that children from poor communities typically have:

Correct AnswerverifiedShow Answer

A plan to revitalize the downtown area of a struggling city would fulfill which of the following goals to address poverty and inequality?

Correct AnswerverifiedShow Answer

Retirement benefits are less like __________,and more like _____________

Correct AnswerverifiedShow Answer

As of 2010,the Gini coefficient was 33.9 in India and 40.8 in the United States.We can interpret this to mean that inequality:

Correct AnswerverifiedShow Answer

If the U.S.population were split into quintiles based on income,with the lowest quintile representing the poorest 20 percent,then those who earned the median income for the United States would be in the:

Correct AnswerverifiedShow Answer

Self- reinforcing mechanisms that cause the poor to stay poor are called:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the last few decades,income inequality in the United States has ___________ mostly because of the ____________

Correct AnswerverifiedShow Answer

Conditional cash transfer programs are programs in which:

Correct AnswerverifiedShow Answer

Most countries in the world have Gini coefficients ranging from:

Correct AnswerverifiedShow Answer

One of the factors that causes differences in inequality across countries is:

Correct AnswerverifiedShow Answer

According to economist Emmanuel Saez,between 1993 and 2010,the incomes of the richest 1 percent grew by ________,and the other 99 percent grew by ________ on average.

Correct AnswerverifiedShow Answer

Community-wide poverty:

Correct AnswerverifiedB

Does low human capital cause poverty or does poverty cause low human capital?

Correct AnswerverifiedShow Answer

Which of the following could be considered a goal of policy to address poverty and inequality?

Correct AnswerverifiedShow Answer

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B

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C

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Retirement benefits are less like ,and more like ___

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

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In the last few decades,income inequality in the United States has _ mostly because of the __

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According to economist Emmanuel Saez,between 1993 and 2010,the incomes of the richest 1 percent grew by ,and the other 99 percent grew by on average.

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B

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