Deck 37: Global Poverty

Question 1

In-kind transfers include the direct transfer of

A)Cash rather than goods.
B)Cash rather than medical services.
C)Goods and services rather than cash.
D)Education rather than housing.

Answer 1

C

Question 2

The minimally adequate living standard for a U.S.family of four is known as the

A)Global poverty standard.
B)Millennium Poverty Goal.
C)United Nations Poverty Goal.
D)U.S.poverty threshold.

Answer 2

D

Question 3

What is not included in America's poverty count?

A)High school dropouts.
B)Immigrants.
C)Teen moms.
D)In-kind transfers.

Answer 3

D

Question 4

Which of the following statements is true?

A)U.S.GDP per capita is five times larger than the world average.
B)According to world standards,12 percent of Americans are poor.
C)The poorest nations of the world have average incomes of $5,000.
D)"Extreme poverty" refers to an income of less than $2 per day.

Question 5

According to official U.S.statistics,the U.S.poverty rate has been approximately ________ percent for the last 40 years.

A)5 to 18
B)12 to 20
C)4 to 13
D)11 to 15

Question 6

The World Bank defines severe poverty as

A)An income level of less than $1.25 per person per day.
B)An income level of less than $3.10 per person per day.
C)An income level that does not allow an individual to buy basic necessities.
D)An extreme lack of food.

Question 7

The best measure of average income for a country is

A)Real GDP.
B)Per capita GDP.
C)The economic growth rate.
D)The capital stock of the economy.

Question 8

When compared to those in poor countries,poor people in the United States receive

A)About the same amount of goods and services.
B)Somewhat fewer goods and services.
C)Far fewer goods and services.
D)Far more goods and services.

Question 9

Which of the following is not an example of in-kind transfers?

A)Food stamps.
B)Social Security payments.
C)Medicaid benefits.
D)Housing subsidies.

Question 10

U.S.per capita GDP is roughly how much larger than the world average?

A)Twice as large.
B)Three times as large.
C)Four times as large.
D)Five times as large.

Question 11

Which of the following statements is true?

A)American poverty is less severe than global poverty.
B)American poverty standards are below world poverty standards.
C)Approximately 25 percent of Americans live in poverty.
D)American poverty is defined by homelessness and malnutrition.

Question 12

The poverty rate is

A)The percentage of the population that is counted as poor.
B)The income needed for an individual to be above the poverty line.
C)The percentage of the population that receives food stamps.
D)An annual income of less than $29,000 for a family of four in 2014.

Question 13

U.S.poverty is more about ________ deprivation than ________ deprivation.

A)meaningful;mild
B)insignificant;relative
C)relative;absolute
D)absolute;significant

Question 14

Which of the following explains why the U.S.poverty threshold increased from $3,000 per year in 1963 to $25,000 per year in 2017?

A)Americans are more spoiled now than they were in 1963.
B)The threshold includes more luxury items now than it did in 1963.
C)Inflation has caused the price for basic necessities to increase since 1963.
D)The government has become more benevolent than it was in 1963.

Question 15

In-kind transfers include

A)Transfer payments and food stamps.
B)Public housing and Medicare.
C)Medicaid and unemployment benefits.
D)Social Security benefits and housing subsidies.

Question 16

The direct transfer of goods and services rather than cash is known as

A)In-kind transfers.
B)Transfer payments.
C)Welfare income.
D)Poverty support.

Question 17

An annual income of less than $24,000 is

A)In-kind income.
B)Below the poverty threshold.
C)Extreme poverty.
D)The poverty rate.

Question 18

In 1963 the U.S.poverty standard was equal to

A)$22,000 per year.
B)$10,000 per year.
C)$3,000 per year.
D)$1,000 per year.

Question 19

Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?

A)GDP deflator.
B)Nominal GDP.
C)Per capita GDP.
D)Real GDP.

Question 20

In 2017 inflation adjusted U.S.poverty threshold was

A)The cost of food and shelter but not other necessities for an individual.
B)The dollar measure of output produced by an individual.
C)An annual income of less than $10,000 for a family of two.
D)An annual income of less than $25,000 for a family of four.

Question 21

The Millennium Poverty Goal is the United Nations' goal of reducing the global rate of extreme poverty to ________ percent by 2015.

A)15
B)10
C)5
D)0

Question 22

The World Bank defines ________ poverty as an income of less than $1.90 per day per person.

A)extreme
B)severe
C)extraordinary
D)relentless

Question 23

Which of the following is not associated with global poverty?

A)Lack of medical care.
B)Low mortality rates.
C)Malnourishment.
D)Lack of proper clothing.

Question 24

Which of the following is true about income inequality?

A)Inequality tends to be greatest in the poorest countries.
B)Inequality is not an issue for developed countries.
C)Inequality tends to get worse as a country develops.
D)Inequality tends to diminish as the population increases.

Question 25

The general approaches to global poverty reduction include all of the following except

A)Within-nation redistribution of income.
B)Across-nation redistribution of income.
C)Government growth.
D)Economic growth.

Question 26

According to the World Bank,"extreme" poverty is defined as an income per person of less than

A)$29,000 per year.
B)$5,000 per year.
C)$2.50 per day.
D)$1.90 per day.

Question 27

According to the World Bank,________ people are classified as being in severe poverty.

A)100,000 million
B)500,000 million
C)800 million
D)2.5 billion

Question 28

Which of the following is associated with global poverty?

A)Lack of health care.
B)Immunization against preventable diseases.
C)Low infant mortality rates.
D)Opportunities for education.

Question 29

Upward mobility for those in poverty is

A)More likely for people in rich nations than in poor nations.
B)More likely for people in poor nations than in rich nations.
C)Equally likely for people in rich nations and poor nations.
D)Not likely to happen at all because most people live in a caste system.

Question 30

The United Nations' goal of reducing the global rate of extreme poverty to 15 percent by 2015 is known as the

A)Global Poverty Goal.
B)Millennium Poverty Goal.
C)United Nations' Poverty Goal.
D)World Poverty Goal.

Question 31

According to the World Bank,roughly 800 million people are classified as being in ________ poverty.

A)subsistence
B)severe
C)tremendous
D)extreme

Question 32

The general approaches to global poverty reduction include all of the following except

A)Economic growth that raises average incomes.
B)Redistribution of incomes across nations.
C)Redistribution of incomes within countries.
D)An increase in government control of resources.

Question 33

Which of the following is not associated with global poverty?

A)The inequality trap.
B)Long life expectancy.
C)Lack of education.
D)Prevalence of HIV.

Question 34

Which of the following countries has the greatest percentage of people living in extreme poverty?

A)India.
B)China.
C)Congo.
D)Bolivia.

Question 35

The World Bank defines ________ poverty as an income of less than $3.10 per day per person.

A)exceptional
B)severe
C)extreme
D)significant

Question 36

Roughly 40%of the people who live in extreme poverty in the world live in

A)Nigeria and China.
B)China and India.
C)Bangladesh and El Salvador.
D)Haiti and India.

Question 37

The U.N.'s Millennium Poverty Goal is to

A)Keep the number of people in poverty at a constant level.
B)Cut the percentage of people in extreme poverty in half worldwide.
C)Cut the absolute number of people in extreme poverty in half worldwide.
D)Reduce the percentage of people in severe poverty in the poorest nations.

Question 38

Over three-fourths of the world's population lives in households that have an average income of less than ________ per year.

A)$10,000
B)$4,000
C)$2,000
D)$1,000

Question 39

Income inequality is

A)Not an issue for wealthy countries such as the United States and Germany.
B)A global issue because the poorest tenth of the population gets 20-30 percent of total income.
C)Often greatest in the poorest countries such as Namibia and Botswana.
D)Not an issue in the United States because of the progressive federal tax system.

Question 40

According to the World Bank,nearly 2 billion people are classified as being in ________ poverty.

A)severe
B)harsh
C)overwhelming
D)extreme

Question 41

Poverty is most likely to decrease when

A)Population increases regardless of what happens to economic growth.
B)GDP increases regardless of what happens to population growth.
C)Population growth exceeds economic growth.
D)Economic growth exceeds population growth.

Question 42

Income inequalities are greatest in

A)Developed countries such as Japan.
B)Rich countries such as the United States.
C)Poor countries such as Namibia.
D)Countries with high levels of GDP.

Question 43

The reduction in world poverty from 1990 to 2014 was due almost entirely to the decrease in poverty in

A)Canada.
B)Mali.
C)China.
D)Ethiopia.

Question 44

The U.N.'s Millennium Aid Goal focuses on aid in the form of

A)Money from rich donor countries.
B)Money from nongovernmental organizations.
C)Redistributions within poor countries.
D)A loan from the United Nations.

Question 45

Which of the following countries meets or exceeds the U.N.'s Millennium Aid Goal of 0.7 percent of donor country GDP?

A)Norway.
B)Australia.
C)The United Kingdom.
D)Japan.

Question 46

Poverty is most likely to decrease in which of the following situations:

A)Population and the economic growth rate both decrease.
B)The population decreases and GDP stays constant.
C)Population grows more rapidly than GDP.
D)The size of the labor force decreases.

Question 47

The U.N.'s Millennium Aid Goal is to raise foreign aid levels to ________ percent of donor country GDP.

A)0.4
B)0.7
C)10.0
D)15.0

Question 48

An increase in production possibilities is known as

A)Predictable growth.
B)Factor expansion.
C)Upward mobility.
D)Economic growth.

Question 49

The United States gives ________ percent of its total output to foreign aid

A)0.28
B)0.19
C)0.7
D)0.4

Question 50

An increase in total output or real GDP is

A)The inequality trap.
B)Productivity growth.
C)Economic growth.
D)The Millennium Poverty Goal.

Question 51

One of the keys to reducing poverty is

A)Government control of resources.
B)The redistribution of existing incomes.
C)Increased population growth.
D)Increased economic growth.

Question 52

In which of the following would the richest tenth of the population be most likely to receive the highest percentage of the country's income?

A)Namibia.
B)The United States.
C)The United Kingdom.
D)Japan.

Question 53

Per capita GDP will definitely fall when

A)Population increases.
B)GDP decreases.
C)The labor force decreases.
D)The population growth rate exceeds the economic growth rate.

Question 54

In which of the following would the richest tenth of the population be most likely to receive the highest percentage of the country's income?

A)Sweden.
B)Botswana.
C)Germany.
D)Canada.

Question 55

Per capita GDP will definitely increase if

A)GDP increases more rapidly than population.
B)GDP and population increase at the same rate.
C)Population increases more rapidly than GDP.
D)Population and GDP decrease at the same rate.

Question 56

Which of the following is a critical key to reducing poverty in the poorest nations?

A)The relationship between output growth and population growth.
B)Reduced human capital.
C)Government ownership of resources.
D)Redistribution of existing income within the nation.

Question 57

Which of the following is not true concerning economic growth?

A)It is an increase in real GDP.
B)It can be sustained in the short run but not the long run.
C)It means that the production possibilities have expanded.
D)It's the result of more resources or better technology.

Question 58

Since 1990 the highest economic growth rates in the world have occurred in

A)The United States.
B)China.
C)India.
D)Nigeria.

Question 59

Which of the following is least likely to reduce poverty?

A)Redirecting resources within the poor nation away from the military.
B)Raising taxes within the poor nation.
C)Receiving foreign aid from rich donor countries.
D)Receiving aid from private charities or NGOs.

Question 60

Economic growth

A)Refers to an increase in output.
B)Causes the production possibilities curve to shift inward.
C)Means that capacity has decreased in the short run.
D)Cannot be sustained over time.

Question 61

Which of the following is not an example of microfinance?

A)A loan to a farmer for a goat that will give milk that the farmer can sell.
B)A loan to a small restaurant owner to buy a refrigerator.
C)A loan to a U.S.-owned electronics company to expand overseas.
D)A loan to a woman to buy a sewing machine to make clothes to sell.

Question 62

Institutional barriers that impede human and physical capital investment are known as

A)The discouraged worker gap.
B)An inequality trap.
C)The human capital effect.
D)An illiteracy trap.

Question 63

Which of the following is not important for the development of human capital?

A)Immunizations and basic health care.
B)High levels of military spending.
C)Access to water and sanitation.
D)Educational opportunities.

Question 64

Output per unit of input measures

A)Productivity.
B)The inequality trap.
C)Per capita GDP.
D)The investment rate.

Question 65

Which of the following is not a true barrier to human capital development in poor nations?

A)Prohibitive costs to meet basic needs.
B)Inequality trap.
C)Illiteracy.
D)Access to health care professionals.

Question 66

In order to have adequate water access,based on the World Bank definition,there should be

A)Indoor plumbing in at least one-quarter of the homes in a country.
B)A private water pipe outside everyone's home.
C)A protected public water pipe within half a mile of everyone's home.
D)A public lake or stream within a mile of everyone's home.

Question 67

If women are prohibited or discouraged from attending school but men are allowed to attend,this is an example of

A)An inequality trap.
B)A human capital gap.
C)A gender gap.
D)A redistribution of capital.

Question 68

The knowledge and skills possessed by the workforce is known as

A)Human finance.
B)Investment capital.
C)Human capital.
D)The inequality trap.

Question 69

Which of the following is not an example of microfinance?

A)A loan to a restaurant owner for an indoor grill.
B)A loan to a bakery for a machine to mix dough.
C)A loan to a small farmer for fertilizer.
D)A loan to an executive for a retirement home.

Question 70

If women are not allowed to vote or inherit wealth but men are,this is an example of

A)The liquidity trap.
B)The disadvantaged trap.
C)A gender trap.
D)An inequality trap.

Question 71

In the poorest nations,agriculture is likely to contribute as much as ________ percent to total output.

A)10
B)30
C)55
D)85

Question 72

The percentage of total output allocated to the production of new plants,equipment,and structures is the

A)Investment rate.
B)Savings rate.
C)Corporate allocation rate.
D)Entrepreneurial rate.

Question 73

The investment rate is the percentage of total output allocated to

A)Saving.
B)Consumer retirement accounts.
C)Education and training for the workforce.
D)The production of new plants,equipment,and structures.

Question 74

Which of the following does not contribute to low farm productivity in poor nations?

A)Lack of effort.
B)Inferior technology.
C)Lack of machinery.
D)Limited infrastructure.

Question 75

In order to increase productivity and economic growth,poor nations need

A)Increased capital investment.
B)A large military.
C)A strong dictator.
D)Increased consumption.

Question 76

Output per labor-hour is used to measure the ________ of labor.

A)effort
B)intelligence
C)productivity
D)seriousness

Question 77

Which of the following will not increase the opportunity for internal financing of capital?

A)Improved banking facilities.
B)Saving incentives.
C)Seizing of private banks by the government.
D)Transparent capital markets.

Question 78

China has experienced particularly high rates of economic growth as a result of

A)High rates of consumer spending.
B)High rates of capital investment.
C)High rates of government spending.
D)Low rates of saving.

Question 79

The granting of small,unsecured loans to small businesses and entrepreneurs is known as

A)Extreme finance.
B)Microfinance.
C)Growth finance.
D)Long-term finance.

Question 80

In order for the existing workforce to be more productive,there needs to be

A)An increase in population.
B)An increase in human capital.
C)A redistribution of income within the nation.
D)A decrease in economic growth.