Deck 37: Global Poverty Glossary Index Reference Tables

Question 1

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.

Answer 1

Per capita GDP.

Question 2

Even those families who remain "poor" after counting in-kind transfers aren't necessarily destitute.Over 40 percent of America's "poor" families own their homes,70 percent own a car or truck,and 30 percent own at least two vehicles.Telephones,color TVs,dishwashers,clothes dryers,air conditioners,and microwave ovens are commonplace in America's poor households.
U.S.poverty is more about _______ deprivation than _______ deprivation.

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

Answer 2

relative;absolute

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

In-kind transfers.

Question 4

In 1963 it was determined that $1,000 per year was needed to purchase a "minimally adequate" diet for a family of four.It was estimated that other basic necessities like housing,clothes,transportation,and so forth would cost twice as much as the food staples.So the government concluded that a budget of $3,000 per year would fund a "minimally adequate" living standard for a U.S.family of four.That standard became the official U.S.poverty threshold in 1963.
In 2009 the 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 $22,000 for a family of four.

Question 5

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

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

Question 6

Since 1963 prices have risen every year.As a result,the price of the poverty "basket" has risen as well.In 2009 it cost roughly $22,000 to purchase those same basic necessities for a family of four that cost only $3,000 in 1963.
Which of the following explains why the U.S.poverty threshold increased from $3,000 per year in 1963 to $22,000 per year in 2009?

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.

Question 7

In-kind transfers allow "poor" families to enjoy a higher living standard than their cash incomes imply.Adding those transfers to cash incomes would bring the U.S.poverty count down into the 9-11 percent range since currently only cash income is considered.
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 8

In 1963 it was determined that $1,000 per year was needed to purchase a "minimally adequate" diet for a family of four.It was estimated that other basic necessities like housing,clothes,transportation,and so forth would cost twice as much as the food staples.So the government concluded that a budget of $3,000 per year would fund a "minimally adequate" living standard for a U.S.family of four.That standard became the official U.S.poverty threshold in 1963.
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.

Question 9

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 10

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

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

Question 11

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 12

In-kind transfers include

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

Question 13

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.

Question 14

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.

Question 15

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 $2.00 per person per day.
C)An income level that does not allow an individual to buy basic necessities.

Question 16

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.

Question 17

In-kind transfers allow "poor" families to enjoy a higher living standard than their cash incomes imply.Adding those transfers to cash incomes would bring the U.S.poverty count down into the 9-11 percent range since currently only cash income is considered.
Which of the following statements is true?

A)American poverty is less permanent than global poverty.
B)American poverty standards are below world poverty standards.
C)Approximately 25 percent of Americans live in poverty.

Question 18

The best measure of average income for a country is

A)Real GDP.
B)Per capita GDP.
C)The economic growth rate.

Question 19

Since 1963 prices have risen every year.As a result,the price of the poverty "basket" has risen as well.In 2009 it cost roughly $22,000 to purchase those same basic necessities for a family of four that cost only $3,000 in 1963.
An annual income of less than $22,000 is

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

Question 20

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.

Question 21

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 22

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

A)severe
B)harsh
C)overwhelming

Question 23

According to the World Bank,over 1 billion people are classified as being in _______ poverty.

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

Question 24

Which of the following is not associated with global poverty?

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

Question 25

Over half 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.

Question 26

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.

Question 27

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

A)extreme
B)severe
C)extraordinary

Question 28

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

A)India.
B)China.
C)Burundi.

Question 29

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.

Question 30

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.

Question 31

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

A)$22,000 per year.
B)$5,000 per year.
C)$2 per day.
D)$1.25 per day.

Question 32

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

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

Question 33

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

Question 34

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

A)100,000 million
B)500,000 million
C)over 1 billion

Question 35

The World Bank defines _______ poverty as an income of less than $2 per day per person.

A)exceptional
B)severe
C)extreme

Question 36

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

A)$8 per day.
B)$5 per day.
C)$2 per day.

Question 37

Which of the following is associated with global poverty?

A)Lack of prenatal care.
B)Immunization against preventable diseases.
C)Low infant mortality rates.

Question 38

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.

Question 39

Which of the following is not associated with global poverty?

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

Question 40

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.

Question 41

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

A)The United States.
B)Canada.
C)France.
D)Denmark.

Question 42

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

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

Question 43

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 44

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

A)Reduced population growth.
B)Reduced human capital.
C)Government ownership of resources.

Question 45

An increase in output or real GDP is

A)The inequality trap.
B)Productivity growth.
C)Economic growth.

Question 46

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.

Question 47

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 48

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.

Question 49

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.

Question 50

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.

Question 51

The reduction in world poverty from 1990 to 2006 was due almost entirely to the decrease in poverty in

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

Question 52

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.

Question 53

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.

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.

Question 55

Poverty is most likely to decrease if

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

Question 56

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 57

An increase in production possibilities is known as

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

Question 58

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.

Question 59

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.

Question 60

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.

Question 61

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 62

According to Rostow's five stages of development,which of the following is characteristic of Stage 5?

A)High per capita GDP attained and available to most people.
B)Dependence on subsistence agriculture.
C)Rapid industrialization.

Question 63

According to Rostow's five stages of development,which of the following is characteristic of Stage 1?

A)Increased agricultural productivity.
B)Low productivity.
C)Growth-enhancing policies.

Question 64

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.

Question 65

The knowledge and skills possessed by the workforce is known as

A)Human finance.
B)Investment capital.
C)Human capital.

Question 66

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

A)Extreme finance.
B)Microfinance.
C)Growth finance.

Question 67

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.

Question 68

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.

Question 69

According to Rostow's five stages of development,which of the following happens during Stage 1?

A)Improved infrastructure.
B)Increased saving and investment.
C)More industrialization.
D)Subsistence agriculture.

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

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 72

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.

Question 73

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.

Question 74

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

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

Question 75

According to Rostow's five stages of development,which of the following happens during Stage 3?

A)Low productivity.
B)Little infrastructure.
C)Increased saving and investment.

Question 76

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.

Question 77

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.

Question 78

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.

Question 79

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.

Question 80

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.