Deck 6: Inequality and Poverty

Question 1

Based on recent estimates of 2005 purchasing power parity (PPP)dollars,developmental economists now estimate living in extreme poverty as living below:

A) $1.00 a day.
B) $1.25 a day.
C) $1.57 a day.
D) $4.95 a day.

Answer 1

B

Question 2

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
National poverty line,global poverty line

Answer 2

Answer will vary

Question 3

A small subsidy to the poorest of the poor will leave which of the following unchanged?

A) headcount index
B) poverty gap
C) income distribution
D) none of the above

Answer 3

A

Question 4

The single most important variable explaining the number of people in poverty in a given country is:

A) the literacy rate.
B) the HDI.
C) per capita income.
D) population.

Question 5

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Lorenz curve,Gini coefficient

Question 6

Major components of the Washington Consensus are:

A) macroeconomic stability and economic openness.
B) the promotion of peace and justice.
C) exploiting the agricultural sector to fund urban industrial development.
D) combating international piracy and terrorism.

Question 7

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
$1.00 a day,$1.25 a day

Question 8

Most frequency distributions of income have the following shape:

A) rectangular.
B) normal.
C) lognormal.
D) none of the above.

Question 9

The design of social safety nets differs from income transfers in that the former:

A) recognize that poverty is often transitory and not permanent.
B) do not always go to poor people.
C) are expensive to administer and lack public support.
D) none of the above.

Question 10

To draw a Lorenz curve showing the distribution of income by household,one should first rank all households according to:

A) household size.
B) age of head of household.
C) wage level.
D) income or consumption level.

Question 11

According to W.Arthur Lewis's surplus labor model,inequality is not just a necessary effect of economic growth; it is

A) the cause of human suffering and exploitation.
B) a cause of growth.
C) an unintended consequence of modern developmental economics.
D) the leading cause of falling wages.

Question 12

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Head-count index,poverty gap

Question 13

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Washington Consensus,1990 World Development Report

Question 14

Kuznets speculated on the relationship between growth and inequality,arguing that inequality rose when:

A) industrialization and urbanization rose.
B) everyone remained in the agriculture sector.
C) service sector jobs reigned supreme as a model for job expansion.
D) people failed to live by the premise found within It Takes a Village.

Question 15

Recent studies show that global inequality is significantly higher than:

A) what the Lorenz curve portrays.
B) the Club of Rome anticipated.
C) population-weighted international inequality.
D) the latest UN data suggested.

Question 16

Trade can help the poor by:

A) increasing the employment of unskilled workers.
B) increasing productivity which will increase growth.
C) decreasing the price the poor pay for goods and services.
D) all of the above.

Question 17

High levels of inequality tend to be associated with:

A) communalism.
B) personal and political violence.
C) countries with poor infrastructures.
D) the rate of infectious diseases.

Question 18

Elements of a pro-poor development strategy would contain all of the following EXCEPT:

A) encouraging rapid economic growth.
B) improving basic health and education.
C) designing social safety nets for vulnerable groups.
D) encouraging zero population growth through free access to all forms of birth control.

Question 19

If everyone in a country had the same level of income,then the value of the Gini concentration ratio would be:

A) 1.0.
B) 0.0.
C) 0.5.
D) infinity.

Question 20

According to the World Bank,64 million people were recently pushed into "extreme poverty" due to:

A) civil war in the Sudan.
B) global warming and its impact on agriculture.
C) the collapse of the Soviet Union.
D) the financial crisis of 2008.

Question 21

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Income transfers,social safety nets

Question 22

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Trade liberalization,anti-globalization

Question 23

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Inequality and weighted population,inequality and unweighted population

Question 24

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Kuznets,Lewis