Question 1

Which are not measures of inequality and poverty mentioned in the text?
A) Average income and Racial Equality
B) Poverty Level and Average Income
C) Racial equality and General Equality
D) All of the above are true.

Accepted Answer

C

Question 2

Which of the following statements is false?
A) There are major gender gaps in wealth, especially in the poorest countries.
B) Within countries, gaps between the wealthiest and the poorest are generally decreasing, after a century in which they tended to grow.
C) Between countries, inequality is decreasing, as developing economies are growing faster than developed countries.
D) Many countries in Asia and in Central Europe that were formerly poor are now reducing the gap with the wealthiest countries.

Accepted Answer

While there are overall trends of decreasing poverty, inequality can still persist and even grow within countries. The statement that gaps between the wealthiest and poorest are generally decreasing is false.

Question 3

Rich countries should be concerned about poverty in other countries in part because
A) poor countries vote in the United Nations and other international organizations.
B) poverty undermines economic growth in rich countries.
C) businesses need poor people in other countries to hire as workers.
D) poverty impedes the development of a poor country's natural resources.

Accepted Answer

B

Question 4

Purchasing power parity (PPP) is especially insightful because it takes into account
A) the different costs of goods in different countries.
B) the percentage of a society living under conditions of poverty.
C) the absolute costs of living in any one country.
D) a relatively simple calculation of the cost of living.

Accepted Answer

Purchasing power parity takes into account the different costs of goods in different countries, allowing for a more accurate comparison of standard of living.

Question 5

The Gender Development Index, published by the United Nations Development Programme, measures the economic equality of men and women. Which of the following countries is considered as low-ranking on this index?
A) Australia
B) Norway
C) Niger
D) United States

Accepted Answer

Niger is considered as low-ranking on the Gender Development Index as it has low levels of women's education, low participation of women in the labor force, and low income levels for women. Australia, Norway, and the United States are all considered high-ranking on this index.

Question 6

The Gini Coefficient refers to the
A) percentage breakdown of those living below and above the poverty line.
B) income ratio of the top and bottom fractions of society.
C) relative rise in income for certain segments of society.
D) absolute rise of a country's income.

Accepted Answer

The Gini Coefficient is a measure of income inequality that examines the ratio of the top and bottom fractions of society. It ranges from 0 to 1, with 0 representing perfect equality (everyone has the same income) and 1 representing perfect inequality (one person has all the income). A higher Gini Coefficient indicates greater income inequality.

Question 7

Defining poverty as having a comparatively low income refers to poverty in
A) relative terms.
B) moral terms.
C) absolute terms.
D) practical terms.

Accepted Answer

The answer of Defining poverty as having a comparatively low...

Question 8

The measure of poverty that includes life expectancy, literacy rates, and years of schooling is known as the
A) per capita GDP.
B) Gini Coefficient.
C) gender development index.
D) Human Development Index.

Accepted Answer

The Human Development Index (HDI) is a measure of poverty and well-being that includes life expectancy, literacy rates, and years of schooling. The other options, such as per capita GDP and Gini Coefficient, focus on economic factors rather than broader measures of quality of life. The gender development index is related to gender inequality specifically, and is not as comprehensive as the HDI.

Question 9

Interdependence and globalization have demonstrated that poverty in other countries can
A) facilitate economic growth in the rich countries.
B) infuse stronger feelings of nationalism in the poor countries.
C) spill over from poor to rich countries through migration, crime, and health problems.
D) unite countries through international organizations.

Accepted Answer

Interdependence and globalization have created interconnected economies and societies, making poverty in one country a potential source of problems for others. When people are unable to find opportunities in their home countries and seek better prospects elsewhere, it can lead to migration, which can create cultural tensions and political challenges in the host country. Poverty is also associated with crime and health problems, which can spill over into other countries. Therefore, poverty in other countries can have negative consequences for both the poor and rich countries.

Question 10

Which of the following countries has the least inequality, according to Gini coefficient data?
A) United States
B) Botswana
C) Columbia
D) Denmark

Accepted Answer

Denmark has the lowest Gini coefficient, indicating the least inequality among the listed countries.

Question 11

Dividing the overall annual income of a country by the population results in the
A) purchasing power parity.
B) percentage of poverty.
C) per capita GDP.
D) gross national product.

Accepted Answer

Dividing the overall annual income of a country by the population results in the per capita GDP (Gross Domestic Product).

Question 12

Theorists in the __________ school of thought tend to argue that inequality was produced by colonialism and will persist unless specific steps are taken.
A) economic structuralist
B) liberal
C) realist
D) constructivist

Accepted Answer

The economic structuralist school of thought focuses on how economic structures and institutions contribute to inequality. They argue that colonialism established economic structures and relationships that perpetuate inequality, and without specific measures to address these structures, inequality will persist.

Question 13

Which of the following is mentioned in the text as a UN Millennium Development Goal?
A) Eradicate Poverty
B) Eradicate Hunger
C) Create a global partnership for development
D) All of the above are true.

Accepted Answer

All three options (eradicate poverty, eradicate hunger, and create a global partnership for development) are mentioned as UN Millennium Development Goals in the text.

Question 14

Self-interest is an important motive for countries who express concern that poverty may be linked to a rise in
A) religious activity.
B) environmental deterioration.
C) terrorist events.
D) capitalist entrepreneurialism.

Accepted Answer

The answer of Self-interest is an important motive for countries...

Question 15

Economic structuralists argue that Europe's economic success was due to the
A) advent of capitalism in Europe.
B) rise of capitalist competition between Europe and the United States.
C) European colonial conquest of the world.
D) rise of military power in Europe.

Accepted Answer

The answer of Economic structuralists argue that Europe's economic success...

Question 16

The definition of poverty by the UN Commission on Human Rights stating that it is "a human condition characterized by the sustained or chronic deprivation of the resources, capabilities, choices, security, and power necessary for the enjoyment of an adequate standard of living and other civil, cultural, economic, political, and social rights," considers poverty in terms of
A) ethical behavior.
B) moral standards.
C) relative guidelines.
D) absolute guidelines.

Accepted Answer

The answer of The definition of poverty by the UN...

Question 17

What problem do late developers confront with economies of scale?
A) They produce on a small scale at a higher cost.
B) They are unable to produce a large amount of their goods.
C) First movers are able to undermine these new businesses.
D) The laws and policies set by the first movers hinder late developers.

Accepted Answer

Late developers face difficulty in achieving economies of scale since they produce on a small scale initially, which leads to higher costs of production per unit. As a result, they cannot compete with first movers who have already established themselves and achieved economies of scale, which enable them to produce at a lower cost per unit.

Question 18

__________ refers to the condition when a country is provided a benefit as it enters a new industry first.
A) Special trading privilege
B) Neo-colonialism
C) First-mover advantage
D) Entrepreneurial benefit

Accepted Answer

First-mover advantage refers to the benefits a country gains when it is the first to enter a new industry. This can include factors such as setting industry standards, establishing customer relationships, and gaining market share before competitors enter the market.

Question 19

In measuring poverty and/or inequality, the following statistic is most widely used because it is among the easiest to determine
A) purchasing power parity.
B) human development index.
C) per capita GDP.
D) Gini coefficient.

Accepted Answer

The answer of In measuring poverty and/or inequality, the following...

Question 20

One major school of thought argues that the rise of capitalism affected Europe's economic development by
A) producing conditions where governments had incentives to let commerce flourish.
B) allowing for growing inequalities in Europe.
C) leading to colonial expansion outside Europe.
D) creating conditions for widespread economic equality.

Accepted Answer

The rise of capitalism produced conditions where governments had incentives to let commerce flourish, including the development of property rights and the rule of law, which facilitated economic growth.

Quiz 12: The Problem of Global Inequality

Which are not measures of inequality and poverty mentioned in the text?

Which of the following statements is false?

Rich countries should be concerned about poverty in other countries in part because

Purchasing power parity (PPP) is especially insightful because it takes into account

The Gender Development Index, published by the United Nations Development Programme, measures the economic equality of men and women. Which of the following countries is considered as low-ranking on this index?

The Gini Coefficient refers to the

Defining poverty as having a comparatively low income refers to poverty in

The measure of poverty that includes life expectancy, literacy rates, and years of schooling is known as the

Interdependence and globalization have demonstrated that poverty in other countries can

Which of the following countries has the least inequality, according to Gini coefficient data?

Dividing the overall annual income of a country by the population results in the

Theorists in the __________ school of thought tend to argue that inequality was produced by colonialism and will persist unless specific steps are taken.

Which of the following is mentioned in the text as a UN Millennium Development Goal?

Self-interest is an important motive for countries who express concern that poverty may be linked to a rise in

Economic structuralists argue that Europe's economic success was due to the

What problem do late developers confront with economies of scale?

__________ refers to the condition when a country is provided a benefit as it enters a new industry first.

In measuring poverty and/or inequality, the following statistic is most widely used because it is among the easiest to determine

One major school of thought argues that the rise of capitalism affected Europe's economic development by