Question 1

The poverty rate is defined as:

Accepted Answer

A)  the percentage of the population that falls below the relative poverty line.
B)  the percentage of the population that falls below the absolute poverty line.
C)  the ratio of low income earners to high income earners.
D)  the lowest one percent of all income earners.E) None of the above
F) B) and C)

Question 2

In 2011, the Census Bureau introduced an alternate poverty measure that is based on:

Accepted Answer

A)  the price of food and adjusts for geographic differences in the cost of living.
B)  the prices of food, clothing, shelter, and utilities and adjusts for geographic differences in the cost of living.
C)  the price of housing and adjusts for geographic differences in the cost of living.
D)  the average income of the lowest quartile of income earners.E) B) and C)
F) All of the above

Question 3

When the United States experiences economic growth, the poverty rate will:

Accepted Answer

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

Question 4

Which region contains the greatest number of people who live on less than $1.90 a day?

Accepted Answer

A)  China
B)  South Asia
C)  Sub-Saharan Africa
D)  South AmericaE) B) and D)
F) A) and C)

Question 5

In recent decades, inequality within countries has been:

Accepted Answer

A)  increasing in countries with low economic growth and decreasing in countries with high economic growth.
B)  increasing in many countries, regardless of the country's economic growth.
C)  decreasing in many countries, regardless of the country's economic growth.
D)  decreasing in countries with low economic growth and increasing in countries with high economic growth.E) All of the above
F) A) and B)

Question 6

Most of Europe has relatively _______ inequality, much of Latin America has relatively _______ inequality, and southern Africa has relatively _______ inequality.

Accepted Answer

A)  low; low; high
B)  high; low; high
C)  high; low; low
D)  low; high: highE) B) and D)
F) B) and C)

Question 7

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) A) and B)
F) A) and C)

Question 8

It is important to consider the potential for trade-offs between __________ 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) None of the above
F) A) and D)

Question 9

Since 1970, the U.S. poverty rate has largely fluctuated between:

Accepted Answer

A)  5 and 10 percent.
B)  0 and 5 percent.
C)  15 and 25 percent.
D)  10 and 15 percent.E) B) and C)
F) A) and C)

Question 10

Incomes for adults vary widely across race and gender in the United States. These differences could be due to:

Accepted Answer

A)  education.
B)  discrimination.
C)  choice of occupation.
D)  All of these can explain the differences.E) A) and D)
F) A) and C)

Question 11

The Lorenz curve demonstrates inequality visually, in that the _______ linear the curve, the _______ inequality exists.

Accepted Answer

A)  more; less
B)  more; more
C)  less; less
D)  None of these are true.E) A) and B)
F) B) and D)

Question 12

The practice of making choices using generalizations based on observable characteristics like race, gender, or age is called:

Accepted Answer

A)  discrimination.
B)  means-testing.
C)  conditional cash-transfers.
D)  welfare.E) A) and C)
F) C) and D)

Question 13

The graph shown displays a society's Lorenz curve.  Which of the following statements is true?

Accepted Answer

A)  This society would be more unequal if the curve was bowed outward instead of inward.
B)  The top 20 percent of earners hold 10 percent of the total income.
C)  The top 40 percent of earners hold 60 percent of the total income.
D)  Households at the 50th percentile of the income distribution earn the same as households at the 60th percentile of the income distribution.E) C) and D)
F) A) and B)

Question 14

In the United States today, households headed by single women have higher poverty rates than:

Accepted Answer

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

Question 15

The _______ the Lorenz curve lies from the line of perfect equality, the _______ the Gini coefficient, and _______ income inequality exists.

Accepted Answer

A)  farther; higher; less
B)  farther; higher; more
C)  closer; higher; less
D)  closer; lower; lessE) A) and D)
F) C) and D)

Question 16

The graph shown displays the Lorenz curve for a society.  If area A is equal to 3,100 and area B is equal to 1,900, what is the Gini coefficient?

Accepted Answer

A)  1.22
B)  0.62
C)  0.38
D)  1.63E) A) and B)
F) A) and D) B

Question 17

In recent decades, inequality within counties has been:

Accepted Answer

A)  increasing in rich countries and decreasing in poor countries.
B)  decreasing in both rich and poor countries.
C)  increasing in both rich and poor countries.
D)  decreasing in rich countries and increasing in poor countries.E) None of the above
F) A) and B) C

Question 18

If the U.S. population were split into quintiles based on income, with the lowest quintile representing the poorest 20 percent, then those who earned the median income for the United States would be in the _______ quintile.

Accepted Answer

A)  second
B)  third
C)  fourth
D)  fifthE) C) and D)
F) A) and B)

Question 19

What changes regarding the inequality between the rich and the poor have occurred over the last 50 years?

Accepted Answer

A)  The poor have become richer at a slower rate than the rich, and so inequality has grown.
B)  The poor have become richer at a slower rate than the rich, and so inequality has decreased.
C)  The poor have become richer at the same rate as the rich, and so inequality has stayed the same.
D)  The poor have become poorer, while the rich have become richer, and so inequality has grown.E) A) and B)
F) A) and C) A

Question 20

Which of the following statements is true about the causal link between human capital and poverty?

Accepted Answer

A)  Low human capital causes poverty, but poverty also causes human capital.
B)  Low human capital causes poverty, but not the other way around.
C)  Poverty causes low human capital, but not the other way around.
D)  There is no causal link between low human capital and poverty.E) B) and D)
F) None of the above

Exam 21: Poverty, Inequality, and Discrimination

The poverty rate is defined as:

Correct AnswerverifiedShow Answer

In 2011, the Census Bureau introduced an alternate poverty measure that is based on:

Correct AnswerverifiedShow Answer

When the United States experiences economic growth, the poverty rate will:

Correct AnswerverifiedShow Answer

Which region contains the greatest number of people who live on less than $1.90 a day?

Correct AnswerverifiedShow Answer

In recent decades, inequality within countries has been:

Correct AnswerverifiedShow Answer

Most of Europe has relatively _______ inequality, much of Latin America has relatively _______ inequality, and southern Africa has relatively _______ inequality.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

It is important to consider the potential for trade-offs between __________ when designing poverty policy.

Correct AnswerverifiedShow Answer

Since 1970, the U.S. poverty rate has largely fluctuated between:

Correct AnswerverifiedShow Answer

Incomes for adults vary widely across race and gender in the United States. These differences could be due to:

Correct AnswerverifiedShow Answer

The Lorenz curve demonstrates inequality visually, in that the _______ linear the curve, the _______ inequality exists.

Correct AnswerverifiedShow Answer

The practice of making choices using generalizations based on observable characteristics like race, gender, or age is called:

Correct AnswerverifiedShow Answer

The graph shown displays a society's Lorenz curve. Which of the following statements is true?

Correct AnswerverifiedShow Answer

In the United States today, households headed by single women have higher poverty rates than:

Correct AnswerverifiedShow Answer

The _______ the Lorenz curve lies from the line of perfect equality, the _______ the Gini coefficient, and _______ income inequality exists.

Correct AnswerverifiedShow Answer

The graph shown displays the Lorenz curve for a society. If area A is equal to 3,100 and area B is equal to 1,900, what is the Gini coefficient?

Correct AnswerverifiedB

In recent decades, inequality within counties has been:

Correct AnswerverifiedC

If the U.S. population were split into quintiles based on income, with the lowest quintile representing the poorest 20 percent, then those who earned the median income for the United States would be in the _______ quintile.

Correct AnswerverifiedShow Answer

What changes regarding the inequality between the rich and the poor have occurred over the last 50 years?

Correct AnswerverifiedA

Which of the following statements is true about the causal link between human capital and poverty?

Correct AnswerverifiedShow Answer

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Most of Europe has relatively ___ inequality, much of Latin America has relatively _ inequality, and southern Africa has relatively _____ inequality.

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The Lorenz curve demonstrates inequality visually, in that the _ linear the curve, the _ inequality exists.

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The ___ the Lorenz curve lies from the line of perfect equality, the _ the Gini coefficient, and _____ income inequality exists.

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B

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C

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A

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