Question 1

A World View article,"The Female 'Inequality Trap,'" says that in many poor nations the "… returns on female human capital investment is low." When women are not allowed to work outside the home or to receive an education,this is referred to as
A)A productivity trap.
B)A prejudice gap.
C)A justice gap.
D)An inequality trap.

Accepted Answer

The term "inequality trap" refers to a situation where discrimination and inequality prevent women from attaining education or working outside the home, resulting in lower returns on their human capital investment.

Question 2

If the U.S.government considers the value of in-kind transfers,the U.S.poverty rate decreases.

Accepted Answer

In-kind transfers, such as Supplemental Nutrition Assistance Program (SNAP) benefits or housing vouchers, provide tangible goods and services to low-income individuals, effectively raising their standard of living. When the value of these transfers is factored into poverty calculations, the poverty rate decreases.

Question 3

According to the World View titled "Muhammad Yunus: Microloans," who won the Nobel Peace Prize for developing microcredit?
A)Vice President Al Gore.
B)Adam Smith.
C)Professor Robert Schiller.
D)Professor Muhammad Yunus.

Accepted Answer

According to the World View titled "Muhammad Yunus: Microloans," Professor Muhammad Yunus won the Nobel Peace Prize for developing microcredit.

Question 4

One World View article in the text is titled "Dying for a Drink of Clean Water." By 2015 the U.N.'s Millennium water goal expects to reduce the percentage of people in the world without safe drinking water by
A)10 percent.
B)25 percent.
C)50 percent.

Accepted Answer

The article states that the U.N.'s Millennium water goal expects to reduce the percentage of people in the world without safe drinking water by 50 percent by 2015.

Question 5

Over half of the people in the world who live in extreme poverty live in China and India combined.

Accepted Answer

According to data from the World Bank, in 2015, 55% of the world's extreme poor (living on less than $1.90 a day) lived in China and India combined.

Question 6

According to Bill Gates,from the World View article titled "The Way We Give: Philanthropy Can Step In Where Market Forces Don't," more than 90 percent of the money devoted to health research is spent on those who
A)Have malaria.
B)Are the healthiest.
C)Live in developing countries.

Accepted Answer

According to the article, "More than 90 percent of the world's 20,000-or-so health research projects are devoted to the health problems suffered by those who have the least: the 10 percent of the world's population who are healthiest." This means that the money devoted to health research is spent on those who are already healthy, rather than those who are suffering from illnesses and diseases.

Question 7

The World Bank defines extreme poverty as income of less than $1.25 per day per person.

Accepted Answer

This is correct as per the definition of extreme poverty by the World Bank.

Question 8

According to the official U.S.threshold,35 percent of Americans live in poverty.

Accepted Answer

According to the official U.S. threshold, the poverty rate in the United States was 10.5% in 2019.

Question 9

According to the World Bank definitions,there are more people in the world living in extreme poverty than there are living in severe poverty.

Accepted Answer

According to the World Bank definitions, extreme poverty is defined as living on less than $1.90 per day, while severe poverty is defined as living on less than $3.20 per day. As the threshold for extreme poverty is lower, there are fewer people living in extreme poverty than in severe poverty.

Question 10

Poverty is considered to be more permanent in the United States than it is in other nations.

Accepted Answer

Poverty in the United States, like in other nations, can be transient or persistent, depending on various factors such as economic conditions, social policies, and individual circumstances. There is no evidence to suggest that poverty is inherently more permanent in the U.S. compared to other countries.

Question 11

American poverty is more about absolute deprivation,and poverty in the rest of the world is more about relative deprivation.

Accepted Answer

Poverty in America often involves relative deprivation, where individuals may have basic needs met but still fall significantly below the standard living conditions of the society. In contrast, poverty in many parts of the rest of the world can involve absolute deprivation, where individuals lack fundamental needs like food, clean water, and shelter.

Question 12

One World View article is titled "Glaring Inequalities." Of the countries listed,the greatest inequality in the distribution of income is likely to occur in
A)Namibia.
B)The United States.
C)Canada.

Accepted Answer

Namibia is known for having one of the highest levels of income inequality in the world, as measured by the Gini coefficient.

Question 13

In-kind transfers include housing subsidies and food stamps.

Accepted Answer

In-kind transfers refer to non-cash benefits provided by the government or other organizations, such as housing subsidies and food stamps.

Question 14

According to the World View article titled "The Way We Give: Philanthropy Can Step In Where Market Forces Don't," in which of the following ways does philanthropy not improve the market outcome?
A)Draw in experts including universities.
B)Give awards.
C)Make novel arrangements with private companies.
D)Require firms to research new and improved health care solutions.

Accepted Answer

Philanthropy does not improve the market outcome by requiring firms to research new and improved health care solutions.

Question 15

One World View article is titled "Glaring Inequalities." Of the countries listed,the least inequality in the distribution of income is likely to occur in
A)Mali.
B)Botswana.
C)Japan.

Accepted Answer

Japan has a reputation for being a relatively egalitarian society with a focus on social cohesion and collective well-being. In addition, Japan has a high standard of living and a strong social safety net, which helps to reduce income inequality. Mali and Botswana, on the other hand, are both developing countries that struggle with poverty and economic instability, which can contribute to higher levels of income inequality.

Question 16

The U.S.poverty standard in 2009 was set at $35,000 per year for a family of four.

Accepted Answer

The U.S. poverty standard in 2009 for a family of four was actually set at an annual income of $22,050, which is significantly lower than $35,000.

Question 17

The official U.S.poverty standard was set in 1963 at $3,000 per year for a family of four.

Accepted Answer

This is true. The official U.S. poverty standard was indeed set in 1963 at $3,000 per year for a family of four. The standard is updated periodically to account for inflation and changes in the cost of living.

Question 18

According to the World Bank,almost 3 billion people are classified as being in severe poverty.

Accepted Answer

According to the World Bank, as of 2020, almost 3 billion people are classified as being in severe poverty, which is defined as living on less than $2.50 a day.

Question 19

The U.S.government counts both cash income and in-kind transfers when determining the poverty rate.

Accepted Answer

The U.S. government primarily uses cash income before taxes and does not include the value of noncash benefits (such as public housing, Medicaid, and food stamps) when determining the poverty rate.

Question 20

According to the World View titled "Jeffrey Sachs: Big Money,Big Plans," how does Columbia University economics professor Jeffrey Sachs expect global poverty rates to be reduced by half by 2015?
A)Rich nations must double their foreign aid flows now and then double them again in 10 years,while poor nations must develop full-scale,comprehensive plans for poverty reduction.
B)Rich nations must quadruple their foreign aid flows now,and poor nations need to be more accepting of help.
C)Rich nations must double their foreign aid flows now and develop full-scale,comprehensive plans for the poor countries to reduce poverty.

Accepted Answer

Jeffrey Sachs expects global poverty rates to be reduced by half by 2015 through a combination of rich nations doubling their foreign aid flows now and then doubling them again in 10 years, as well as poor nations developing full-scale, comprehensive plans for poverty reduction.

Quiz 37: Global Poverty Glossary Index Reference Tables

A World View article,"The Female 'Inequality Trap,'" says that in many poor nations the "… returns on female human capital investment is low." When women are not allowed to work outside the home or to receive an education,this is referred to as

If the U.S.government considers the value of in-kind transfers,the U.S.poverty rate decreases.

According to the World View titled "Muhammad Yunus: Microloans," who won the Nobel Peace Prize for developing microcredit?

One World View article in the text is titled "Dying for a Drink of Clean Water." By 2015 the U.N.'s Millennium water goal expects to reduce the percentage of people in the world without safe drinking water by

Over half of the people in the world who live in extreme poverty live in China and India combined.

According to Bill Gates,from the World View article titled "The Way We Give: Philanthropy Can Step In Where Market Forces Don't," more than 90 percent of the money devoted to health research is spent on those who