Question 1

A program likely to make a big dent in chronic poverty is:

Accepted Answer

A)   unemployment insurance.
B)   health insurance.
C)   job training.
D)   none of the above are likely to be effective in reducing chronic poverty.E) A) and B)
F) A) and C)

Question 2

The Lorenz curve maps:

Accepted Answer

A)   the cumulative percentage of the population against the cumulative percentage of income earned by those people.
B)   each quintile of the population in order of income-earned against the average income earned by those people.
C)   GDP per capita against what people really earn by quintile.
D)   None of these describes what the Lorenz curve maps.E) A) and B)
F) A) and C)

Question 3

Understanding the potential for tradeoffs between __________ is an important consideration when designing poverty policy.

Accepted Answer

A)   equity and efficiency
B)   the rich and the poor
C)   the old and the young
D)   All of these are true.E) A) and B)
F) B) and D)

Question 4

A perfectly straight Lorenz curve would mean:

Accepted Answer

A)   perfect inequality, and it does not exist in the real world.
B)   perfect equality, and it does not exist in the real world.
C)   perfect equality, and is more common among the wealthy, developed nations.
D)   perfect inequality, and is more common among the developing nations.E) A) and D)
F) None of the above

Question 5

In recent decades,richer countries have experienced __________ inequality,and poor countries have experienced ____________ inequality.

Accepted Answer

A)   increasing; decreasing
B)   decreasing; increasing
C)   increasing; increasing
D)   decreasing; decreasingE) None of the above
F) B) and D)

Question 6

If we compare income mobility in relative terms,we would measure whether a person's income:

Accepted Answer

A)   is higher than her parents' income.
B)   places her higher up in the income distribution than her parents' income.
C)   is higher at the end of her career compared to the beginning.
D)   rises with age for all people.E) B) and D)
F) A) and B)

Question 7

When the U.S.experiences economic growth,the poverty rate will:

Accepted Answer

A)   fall, because growth has benefited everyone.
B)   increase, because growth typically only benefits the richest 1 percent.
C)   fall, because growth typically helps the poor more than the wealthy.
D)   increase, because growth has benefited the wealthy more than the poor.E) B) and D)
F) None of the above

Question 8

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

A)   price parity purchasing index.
B)   consumer price index.
C)   consumer purchasing power index.
D)   purchasing power parity index.E) A) and B)
F) A) and C)

Question 9

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

Accepted Answer

A)   be unemployable.
B)   earn more money.
C)   not benefit from specializing.
D)   All of these are true.E) All of the above
F) A) and B)

Question 10

Today black and Hispanic Americans have poverty rates:

Accepted Answer

A)   three times as high as white Americans.
B)   twice as high as white Americans.
C)   half as high as white Americans.
D)   four times as high as white Americans.E) B) and D)
F) All of the above

Question 11

Means tested government programs:

Accepted Answer

A)   require recipients to undergo skills testing for benefits.
B)   define eligibility for benefits based on recipients' income.
C)   are as effective as unconditional cash transfers.
D)   are rarely used in the US.E) B) and C)
F) A) and B)

Question 12

Long-term solutions to communitywide poverty must involve:

Accepted Answer

A)   ways to expand the range opportunities available to the population.
B)   increasing the value of the currency.
C)   ways to reduce taxes collected by local governments.
D)   All of these are true.E) B) and D)
F) B) and C)

Question 13

The Lorenz curve demonstrates:

Accepted Answer

A)   inequality visually; the more linear the curve, the less inequality exists.
B)   inequality visually; the more linear the curve, the more inequality exists.
C)   average income levels per capita; the more linear the curve, the less inequality exists.
D)   average income levels per quintile; the more linear the curve, the more inequality exists.E) B) and D)
F) A) and C)

Question 14

A Gini coefficient of zero indicates:

Accepted Answer

A)   there is no income being earned.
B)   Computed correctly the Gini coefficient only has values greater than zero.
C)   perfect inequality.
D)   perfect equality.E) A) and B)
F) B) and D)

Question 15

If the population is split up into quintiles by income,the bottom quintile would include:

Accepted Answer

A)   the poorest half of the population.
B)   the poorest 60 percent of the population.
C)   the richest half of the population.
D)   the poorest 20 percent of the population.E) B) and C)
F) A) and B)

Question 16

In the United States today,households headed by single women are more likely to be poor than:

Accepted Answer

A)   married families.
B)   black males.
C)   Hispanic males.
D)   All of these are true.E) C) and D)
F) A) and B)

Question 17

Those who are chronically poor are defined as those who spend:

Accepted Answer

A)   three or more consecutive years in poverty.
B)   at least two consecutive months within a year in poverty.
C)   three or more years in poverty.
D)   at least six consecutive months within a year in poverty.E) All of the above
F) A) and B)

Question 18

The most common international poverty measure is:

Accepted Answer

A)   the number of people living on less than $1.90 per day.
B)   the number of people living on less than $5 per day.
C)   the absolute poverty line, as defined by the U.S. Census Bureau.
D)   the poorest 1 percent of income earners within a given country.E) A) and D)
F) B) and D)

Question 19

The term "welfare state" describes the idea that:

Accepted Answer

A)   government has a responsibility to promote the economic well-being of its citizens.
B)   some areas suffer a disproportionate amount of chronic poverty.
C)   some areas suffer from stagnant economic growth.
D)   None of these is true.E) A) and B)
F) A) and C)

Question 20

Critics of the U.S.definition of poverty claim it is an inaccurate measure of our poor because:

Accepted Answer

A)   it is a single number that does not capture regional differences in the cost of living.
B)   the ratio of food to total income is different now than when the definition of poverty was defined.
C)   it fails to account accurately for expenditures other than food.
D)   All of these are true.E) All of the above
F) A) and C)

Exam 21: Poverty, Inequality, and Discrimination

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

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If we compare income mobility in relative terms,we would measure whether a person's income:

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Critics of the U.S.definition of poverty claim it is an inaccurate measure of our poor because:

Correct AnswerverifiedShow Answer

In recent decades,richer countries have experienced __________ inequality,and poor countries have experienced ____________ inequality.

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In the United States today,households headed by single women are more likely to be poor than:

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The most common international poverty measure is:

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

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Long-term solutions to communitywide poverty must involve:

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Means tested government programs:

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When the U.S.experiences economic growth,the poverty rate will:

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Today black and Hispanic Americans have poverty rates:

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A program likely to make a big dent in chronic poverty is:

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A perfectly straight Lorenz curve would mean:

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Those who are chronically poor are defined as those who spend:

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The Lorenz curve demonstrates:

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A Gini coefficient of zero indicates:

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The term "welfare state" describes the idea that:

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The Lorenz curve maps:

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If the population is split up into quintiles by income,the bottom quintile would include:

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Understanding the potential for tradeoffs between __________ is an important consideration when designing poverty policy.

Correct AnswerverifiedShow Answer

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In recent decades,richer countries have experienced inequality,and poor countries have experienced __ inequality.

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