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Exam 6: Inequality and Poverty

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Question 1

Multiple Choice

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The design of social safety nets differs from income transfers in that the former:

A) recognize that poverty is often transitory and not permanent.
B) do not always go to poor people.
C) are expensive to administer and lack public support.
D) none of the above.

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

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A

Question 2

Multiple Choice

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According to W.Arthur Lewis's surplus labor model,inequality is not just a necessary effect of economic growth; it is

A) the cause of human suffering and exploitation.
B) a cause of growth.
C) an unintended consequence of modern developmental economics.
D) the leading cause of falling wages.

E) None of the above
F) C) and D)

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Question 3

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IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Lorenz curve,Gini coefficient

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Inequality and weighted population,inequality and unweighted population

To draw a Lorenz curve showing the distribution of income by household,one should first rank all households according to:

Most frequency distributions of income have the following shape:

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Head-count index,poverty gap

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Trade liberalization,anti-globalization

Based on recent estimates of 2005 purchasing power parity (PPP) dollars,developmental economists now estimate living in extreme poverty as living below:

Recent studies show that global inequality is significantly higher than:

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -National poverty line,global poverty line

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Income transfers,social safety nets

Trade can help the poor by:

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -$1.00 a day,$1.25 a day

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Kuznets,Lewis

High levels of inequality tend to be associated with:

Major components of the Washington Consensus are:

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Washington Consensus,1990 World Development Report

According to the World Bank,64 million people were recently pushed into "extreme poverty" due to:

Kuznets speculated on the relationship between growth and inequality,arguing that inequality rose when: