Deck 12: Poverty Inequality

Question 1

By Latin American standards, _____ percent of the population is poor.

A) 33.8
B) 19.8
C) 22.6
D) 35.0
E) 32.3

Answer 1

A

Question 2

Using local measures of poverty, approximately _____ percent of the people of Latin America are poor.

A) 10.8
B) 28.5
C) 22.2
D) 29.6
E) 33.8

Answer 2

E

Question 3

The average poverty rate reported by the governments of Latin America is:

A) 8.4 percent
B) 16.6 percent.
C) 19.2 percent.
D) 25.4 percent.
E) 33.8 percent.

Answer 3

E

Question 4

Which of these factors has not contributed to the poverty and inequality found across Latin America?

A) historical roots
B) business regulations
C) ISI
D) educational inequality
E) all of the above

Question 5

The GDP per capita in Latin America is approximately what?

A) $4,500
B) $1,200
C) $13,200
D) $7,700
E) $9,000

Question 6

What percentage of Latin America in 2018 lives on $2.50USD per day?

A) 8.3%
B) 29.4%
C) 12.4%
D) 10.6%
E) 3.7%

Question 7

The amount of money necessary to meet certain basic thresholds of human existence is known as:

A) absolute poverty
B) relative poverty
C) Gini coefficient
D) Human Opportunity Index
E) productivity

Question 8

According to the Gini coefficient scale, perfectly equal income distribution would result in a score of what?

A) 0
B) 1
C) 5
D) 10
E) 100

Question 9

By worldwide standard, Latin America has a _____ Gini coefficient score.

A) low
B) below average
C) average
D) above average
E) high

Question 10

The Gini coefficient for Latin America as a whole is:

A) 0.39
B) 0.52
C) 0.46
D) 0.65
E) 0.79

Question 11

The average Gini coefficient for Latin America is now:

A) 22.6.
B) 35.2.
C) 40.1.
D) 42.3.
E) 46.0.

Question 12

Which of the following now contributes to inequality in Latin America?

A) low growth
B) complex business regulation
C) a poor public educational system
D) all of the above
E) none of the above

Question 13

Which of the following contributes to inequality in Latin America?

A) history
B) ISI
C) educational inequality
D) all of the above
E) none of the above

Question 14

Latin America as a whole score approximately what on the Human Opportunity Index?

A) 28
B) 47
C) 78
D) 85
E) 92

Question 15

The two components of the Human Opportunity Index are:

A) education and housing.
B) education and infant mortality.
C) housing and infrastructure.
D) education and internet connections.
E) housing and food consumption.

Question 16

Which of these is not a factor in the "housing" portion of the Human Opportunity Index?

A) sanitation
B) electricity
C) clean water
D) internet capability
E) none of the above

Question 17

Which aspects of ISI tended to increase inequality?

A) the encouragement of import substitution industrialization
B) trade policy
C) monetary policy
D) a and b
E) b and c

Question 18

Trade policy under ISI tended to favor:

A) the scarce factor of production.
B) the abundant factor of production.
C) farmers.
D) all of the above
E) none of the above

Question 19

____ terms of trade, as well as _____ imports, was a key argument for ISI, which stifled Latin American economic growth.

A) Declining, reducing
B) Increasing, reducing
C) Declining, increasing
D) Increasing, increasing
E) none of the above

Question 20

Which of these was not a government subsidy used to promote ISI?

A) loans on attractive terms
B) an overvalued exchange rate
C) multiple forms of protectionism
D) high corporate tax rates
E) none of the above

Question 21

Business and labor market regulations contribute to inequality via:

A) trade policy.
B) monetary policy.
C) informality
D) all of the above
E) none of the above

Question 22

The Gini coefficient for educational inequality in Latin America is:

A) 12.2
B) 14.8
C) 15.9
D) 27.0
E) 33.8

Question 23

Which country in Latin America has the best PISA scores?

A) Argentina
B) Uruguay
C) Mexico
D) Costa Rica
E) Chile

Question 24

The accumulation of human capital is critically dependent on the quality of a country's what?

A) exchange rate system
B) interest rate
C) business regulation
D) endowment of factors of production
E) educational system

Question 25

The famous Brazilian CCT program is:

A) en efectivo.
B) CASP.
C) EFT.
D) bolsa familia.
E) seguridad social.

Question 26

Define the terms absolute and relative poverty. How do these terms apply to Latin America?

Question 27

What factors could reduce poverty and inequality in Latin America?

Question 28

Describe how Latin America's historical roots have affected its current income distribution situation.

Question 29

List and briefly describe the major sources of income inequality in Latin America.

Question 30

Describe the income distribution situation in Latin America. What factors could work to improve the situation?

Question 31

What is the relationship between ISI and poverty and inequality in Latin America?

Question 32

What is the Gini coefficient? How does it apply to Latin America?

Question 33

What improvements could Latin American governments make to improve the income inequality that is widespread across the region?

Question 34

Latin America ranks as a solidly middle income region. Yet many people live in poverty. Describe several factors that could work to explain this.

Question 35

Explain why education quality is highly important for income equality.