Question 1

Overall,rapid economic growth between 1981 and 2012 has ______ the global poverty rate from __________________.

Accepted Answer

Rapid economic growth during this period significantly reduced the global poverty rate from above 44 percent to 12.7 percent.

Question 2

The set of skills,knowledge,experience,and talent that determine people's productivity as workers is called:

Accepted Answer

The set of skills, knowledge, experience, and talent that determine people's productivity as workers is called Human capital. Physical capital (A) refers to tangible assets that contribute to production, such as tools or machinery. Investment (B) is the act of using resources to create economic gain. Educational training (D) is a component of human capital, but not inclusive of all factors.

Question 3

Bad health is an example of:

Accepted Answer

Bad health can often be a poverty trap, meaning that individuals in poverty are more likely to experience poor health outcomes and the resulting medical expenses can further perpetuate their poverty. It is not a social digression as health is a fundamental aspect of human wellbeing, and it is not necessarily a societal trap as the causes of poor health can vary greatly.

Question 4

The poverty rate dropped from 84 percent in 1981 to 11.2 percent in 2010 in what country?

Accepted Answer

China's poverty rate dropped from 84 percent in 1981 to 11.2 percent in 2010, according to the World Bank.

Question 5

In the last few decades,the poverty rate in the US has

Accepted Answer

The answer of In the last few decades,the poverty rate...

Question 6

The more human capital you have,the more likely you will:

Accepted Answer

Human capital refers to the knowledge, skills, and abilities that a person possesses, which can be used to produce economic value. The more human capital one has, the more valuable they are to employers and the more they can command higher wages. Therefore, it is more likely that someone with more human capital will earn more money. The other choices are not true - having more human capital makes you more employable and more likely to benefit from specializing.

Question 7

Does low human capital cause poverty or does poverty cause low human capital?

Accepted Answer

It is widely known that poverty and low human capital are intertwined factors. People living in poverty are often not able to access education, healthcare, and other resources that can lead to the development of human capital. At the same time, individuals with limited human capital are more likely to remain in poverty due to a lack of skills, abilities, and qualifications necessary to secure better-paying jobs and improve their economic situation. Therefore, the relationship is bidirectional, and neither factor can be fully understood without considering the other.

Question 8

Long-term solutions to communitywide poverty must involve:

Accepted Answer

Expanding the range of opportunities available to the population is the best long-term solution for reducing community-wide poverty. This can be done through investments in education, training programs, and job creation initiatives. Increasing the value of the currency and reducing taxes collected by local governments may provide short-term relief but are not sustainable solutions.

Question 9

Evidence shows that children from poor communities typically have:

Accepted Answer

Children from poor communities often have limited access to quality education, healthcare, and other resources that are necessary for acquiring human capital. This can lead to reduced opportunities for them to gain the skills, knowledge, and experiences needed to succeed in life.

Question 10

Which of the following areas of the world experienced virtually no change in its poverty rate from 1981 to 2010?

Accepted Answer

According to World Bank data, sub-Saharan Africa experienced little to no change in its poverty rate from 1981 to 2010. While progress has been made in reducing poverty in some parts of the region, overall population growth and conflict have hindered poverty reduction efforts.

Question 11

Self- reinforcing mechanisms that cause the poor to stay poor are called:

Accepted Answer

Poverty traps are self-reinforcing mechanisms that cause the poor to stay poor. They refer to the set of circumstances that make it very difficult for people to escape poverty, even if they work hard and make good decisions. These mechanism can include lack of access to credit, education, and healthcare, as well as discrimination and other forms of structural inequality.

Question 12

A credit constraint is:

Accepted Answer

A credit constraint refers to the inability to get a loan even though a person expects to be able to repay the loan plus interest. This can be due to factors such as a low credit score or high debt-to-income ratio.

Question 13

By monitoring financial diaries of several of the world's poorest families,economists found that a challenge facing the poor was:

Accepted Answer

Economists found that a significant challenge for the poor was that their income fluctuated a lot, making financial planning and stability difficult.

Question 14

A key to creating effective policy to fight poverty is to understand:

Accepted Answer

In order to effectively fight poverty, it is important to understand the underlying causes and factors that contribute to poverty. By identifying and addressing these root causes, policymakers can create policies that are more targeted and effective in reducing poverty.

Question 15

Economists collect data on prices in every country and develop an index that describes the overall difference in prices between countries called the:

Accepted Answer

The correct index that describes the overall difference in prices between countries is the purchasing power parity index, also known as PPP. This index is used to compare the economic productivity and standards of living between countries. The other options (A, B, and C) do not accurately describe this index.

Question 16

The international poverty line at $1.90 a day at purchasing power parity means that in each country the poverty line is the amount that will allow you to buy a basket of goods equivalent to what $1.90 would buy:

Accepted Answer

The international poverty line at $1.90 a day is set based on what $1.90 would buy in the United States, using purchasing power parity to adjust for cost of living differences across countries.

Question 17

Community-wide poverty:

Accepted Answer

Community-wide poverty creates problems beyond those faced by poor individuals living in wealthier communities. This includes issues like limited access to resources and services, higher crime rates, and fewer opportunities for education and employment. While community-wide poverty may be more prevalent in less wealthy countries, it is not nonexistent in the developed world.

Question 18

You acquire human capital by:

Accepted Answer

All of these options are true. Getting an education, investing in healthcare, and gaining experience in jobs are all ways to acquire human capital. Education provides knowledge and skills, healthcare ensures physical and mental wellness, and experience teaches practical skills and problem-solving abilities. All of these factors contribute to an individual's ability to perform effectively in the workforce and increase their potential earning power.

Question 19

The World Bank estimates that about ____ of the planet lives below $1.90 a day per person,and ____ lives on less than $3.10:

Accepted Answer

The World Bank estimates that about 13% of the planet lives below $1.90 a day per person, and 35% lives on less than $3.10.

Question 20

The $1.90 (PPP)per day line was chosen by averaging the national poverty lines of 15 poor countries to represent:

Accepted Answer

The $1.90 (PPP) per day line was chosen to represent absolute poverty by some globally comparable standard. It was calculated by averaging the national poverty lines of 15 poor countries and represents the minimum amount required to meet basic needs such as food, shelter, and clothing. It is used by international organizations such as the World Bank to track progress in reducing extreme poverty.

Quiz 21: Poverty, Inequality, and Discrimination

Overall,rapid economic growth between 1981 and 2012 has the global poverty rate from ____________.