Deck 5: Poverty,Inequality and Vulnerability

Question 1

From the World Development Indicators 2012,the Headcount Ratio using $2 per day poverty line in Bangladesh was 76.5 and in Ethiopia was 77.6.It means:

A) In Ethiopia,poverty is slightly more widespread.
B) In Bangladesh,poverty is slightly more widespread.
C) In Ethiopia,poverty is slightly deeper.
D) In Bangladesh,poverty is slightly deeper.

Answer 1

A

Question 2

Which one should the priority of policymakers among economic growth,poverty reduction and inequality reduction?

A) growth.
B) poverty reduction
C) inequality reduction.
D) none of the above,it is complicated.

Answer 2

D

Question 3

To construct a Lorenz curve measuring the distribution of per capital household income,we order everyone in the population by:

A) consumption expenditure.
B) the number of children in the household.
C) age of head in the household.
D) income per capita

Answer 3

D

Question 4

Among income poor people,if they have few assets and are likely to remain poor for a long time,they are in ________ poverty.

A) absolute
B) relative
C) persistent
D) transitory

Question 5

According to World Bank (2012),the Gini coefficient of .30 for Ethiopia was almost the same as the Gini coefficient of .31 for Hungary.From these two numbers,what can we conclude?

A) Ethiopia and Hungary have the same headcount ratios.
B) Ethiopia and Hungary have the same Lorenz curves.
C) Ethiopia and Hungary have the same levels of inequality.
D) none of the above.

Question 6

According to World Bank (2012),in Ethiopia,the poorest 20 percent of population received 9.3 percent of income or consumption and the richest 20 percent of population received 39.4 percent of income or consumption; in South Africa,the poorest 20 percent of population received 2.7 percent of income or consumption and the richest 20 percent of population received 68.2 percent of income or consumption.What conclusion can we reach based on the above statistics?

A) absolute poverty in South Africa is more widespread.
B) the income distribution is more unequal in South Africa.
C) relative poverty in South Africa is more widespread.
D) South Africa is growing faster than Ethiopia.

Question 7

If all incomes in an economy were rising,but the incomes of the richest people were rising faster than the incomes of the poorest,this would be a success by the criterion of

A) absolute poverty reduction.
B) inequality reduction.
C) both a and b.
D) neither a nor b.

Question 8

If everyone in an economy had the exactly same level of income,what would the value of the Gini coefficient?

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

Question 9

If country A and country B have identical Lorenz curves,it means:

A) country A and country B have the same income per capita.
B) country A and country B have the same population.
C) country A and country B have the same distribution of income.
D) country A and country B have the same poverty gap.

Question 10

From the World Development Indicators 2012,the Poverty Gap Index using $2 per day poverty line in Ethiopia was 28.9 and in Haiti was 46.7.It means:

A) In Ethiopia,poverty is more widespread.
B) In Haiti,poverty is more widespread.
C) In Ethiopia,poverty is deeper.
D) In Haiti,poverty is deeper.

Question 11

All of the following is examples of Ex ante coping mechanisms except:

A) precautionary saving.
B) participation in informal insurance arrangements.
C) take out loans to smooth consumption.
D) use of insecticide-treated bed nets.

Question 12

The share of population living on less than $2 per day is nearly identical in Côte d'Ivoire and Indonesia.This indicates that

A) poverty situations are about the same in these two countries.
B) income gaps are about the same in these two countries.
C) children mortality rates for age under five are about the same in these two countries.
D) none of the above

Question 13

Which of the following is not a poverty measure?

A) Headcount Ratio.
B) Total Income Gap.
C) Gini coefficient.
D) Poverty Gap Index.

Question 14

If we use $10 per day as the global poverty line compared to use $2 per day,the global poverty would be

A) greater.
B) smaller.
C) the same.
D) all of the above are possible.

Question 15

If everyone in an economy had the exactly same level of income,where would the Lorenz curve for this economy locate?
E) 45 degree line.
F) L-shaped curve following the bottom and right sides of the Lorenz curve box.
G) L-shaped curve following the left and top sides of the Lorenz curve box. h. a curve starts off with a lope lower than 1 then it becomes steeper.

Question 16

Which one should the priority of policymakers among economic growth,poverty reduction and inequality reduction?

A) growth.
B) poverty reduction
C) inequality reduction.
D) none of the above,it is complicated.

Question 17

If country A's Lorenz curve dominates country B's,it means:

A) inequality is worse in country A than in country B.
B) inequality is worse in country B than in country A.
C) country B's Lorenz curve is above country A's.
D) country A is richer than country B on average.

Question 18

Poverty reduction efforts reduce inequality at the same time if

A) the incomes of non-poor remain unaffected.
B) the financing for the poverty reduction efforts is derived by taxing the non-poor.
C) the incomes of poor grow faster than the incomes of non-poor.
D) all of the above.

Question 19

If one person in an economy had all the income and the rest of the population had zero income,what would the value of the Gini coefficient?

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

Question 20

If one person in an economy had all the income and the rest of the population had zero income,where would the Lorenz curve for this economy locate?

A) 45 degree line.
B) L-shaped curve following the bottom and right sides of the Lorenz curve box.
C) L-shaped curve following the left and top sides of the Lorenz curve box.
D) a curve starts off with a lope lower than 1 then it becomes steeper.

Question 21

What is involved in constructing a measure of poverty?

Question 22

Empirical studies show that with economic growth,inequality ________ and absolute poverty ________.

A) decreases; decreases
B) increases; decreases
C) change is unknown; decreases
D) increases; increases

Question 23

Mathematically,all of the following statements are correct except

A) If we could increase economic growth while holding the distribution of income constant,we would speed the rate of poverty reduction.
B) If we could increase both economic growth and inequality,we would speed the rate of poverty reduction.
C) If we could speed reductions in inequality while holding economic growth constant,we would speed the rate of poverty reduction.
D) If we could increase economic growth while reducing the inequality,we would speed the rate of poverty reduction.

Question 24

Policies promoting asset creation and growth may improve well-being of the poor through

A) the policies give the poor new assets directly or they encourage the poor to undertake their own investments.
B) the policies drive up wages for low-skill workers or drive down the prices of goods consumed by the poor.
C) the policies can generate more assets for non-poor and their assets can be transferred to the poor through public or private safety nets.
D) All of the above.

Question 25

Empirical studies show that with economic growth,the poorest 20 percent of population gain ________ the average members of the population.

A) more than
B) less than
C) the same as
D) we cannot compare them

Question 26

When the income of the poorest 20 percent of population grow at the same percentage rate as the incomes of the rich,we can conclude that the poor benefit ________ compared to the non-poor in terms of absolute benefits.

A) more than
B) less than
C) the same as
D) we cannot compare them

Question 27

Growth policies are more likely to reduce vulnerability in the following situations except

A) raising the incomes of the poor
B) creating immunization programs
C) people moving in response to new opportunities.
D) facilitate the development of market relationships

Question 28

What is involved in constructing a measure of inequality?