Poverty, Inequality, and Development

Question 1

It refers to uneven distribution of total national income among households.

Answer 1

Income inequality

Question 2

What are the two principal measures of income inequality?

Answer 2

Size distribution (Kuznets Ratio)
Lorenz Curve

Question 3

This is the most commonly used measure to quantify individual persons or households.

Answer 3

Size distribution

Question 4

This method does not consider the manner on how the income was earned or received.

Answer 4

Size distribution

Question 5

What matters here is how much each individual earns irrespective of whether the income is derived solely from employment or from other sources like interest, profits, rents, gifts, or inheritance.

Answer 5

Size distribution

Question 6

This measure ignores the locational and occupational sources of income.

Answer 6

Size distribution

Question 7

How do economists and statisticians arrange the individuals’ personal income?

Answer 7

By ascending order

Question 8

After arranging all individuals by ascending personal income, what happens next?

Answer 8

Dividing the total population into distinct groups or sizes

Question 9

What are the common methods to divide the population according to ascending income levels?

Answer 9

Quintiles (Fifths)
Deciles (Tenths)

Question 10

It refers to the 20% proportion of any numerical quantity.

Answer 10

Quintile (Fifths)

Question 11

A population divided into quintiles would be divided into how many groups of equal sizes?

Answer 11

Five

Question 12

It refers to the 10% proportion of any numerical quantity.

Answer 12

Deciles (Tenths)

Question 13

A population divided into deciles will be divided into how many equal groups?

Answer 13

Ten

Question 14

Kuznets Ratio is named after the Nobel laureate named?

Answer 14

Simon Kuznets

Question 15

What is the common measure of income inequality where the ratio of the incomes received by the top 20% and bottom 40% are computed?

Answer 15

Kuznets Ratio

Question 16

What has often been used as a measure of the degree of inequality between high- and low-income groups in a country?

Answer 16

Kuznets Ratio

Question 17

What is used by Kuznets ratio if the ratio of the incomes received by the top 20% and bottom 40% are computed?

Answer 17

Quintiles

Question 18

What is used by Kuznets ratio if the ratio of the incomes received by the top 10% and bottom 10% are computed?

Answer 18

Deciles

Question 19

It is a graphical representation of income inequality or wealth inequality.

Answer 19

Lorenz Curve

Question 20

When and who developed the Lorenz curve?

Answer 20

Max Lorenz (an American Economist)
1905

Question 21

Lorenz curve plots percentiles of the population on the what axis?

Answer 21

Horizontal Axis

Question 22

It shows the cumulative share of income from different sections of the population.

Answer 22

Lorenz curve

Question 23

It is the situation of being unable or only barely able to meet the subsistence essentials of food, clothing, and shelter.

Answer 23

Absolute Poverty

Question 24

The extent of poverty is measured through what?

Answer 24

Headcount index

Question 25

It refers to the number of people who are unable to command sufficient resources to satisfy basic needs.

Answer 25

Headcount index

Question 26

It is the minimum income required to meet the basic food needs, satisfying the nutritional requirements set by the FNRI.

Answer 26

Food threshold

Question 27

It is the minimum income required to meet the basic food and non-food needs.

Answer 27

Poverty threshold

Question 28

What are the high-poverty groups in a given nation? (WER)

Answer 28

Women and Poverty Ethnic MInorities and Poverty Rural Poverty

Question 29

What is the most valid generalizations about the poor?

Answer 29

- They are disproportionately located in rural areas - Primarily engaged in agricultural and associated activities - Likely to be women and children - Often concentrated amon minority ethnic groups and indigenous peopl

Question 30

Who makes up a substantial majority of the world's poor?

Answer 30

Women

Question 31

In 1996, how many percentages of women made up the world's poor?

Answer 31

70%

Question 32

In 1996, how many percentages of women made up the world's illiterate?

Answer 32

65%

Question 33

What are the policy options on income inequality and poverty? (MMMA)

Answer 33

Mitigating the size distribution Moderating (reducing) the size distribution at the upper levels Moderating (increasing) the size distribution at the lower levels Altering the functional distribution

Question 34

It refers to the amounts of income paid to various individuals or households.

Answer 34

Functional distribution

Question 35

It represents the total income of individual persons or households.

Answer 35

Size distribution

Question 36

This level represents the individuals with the highest amount of income in a given population.

Answer 36

Upper Levels

Question 37

We mitigate the size distribution through what?

Answer 37

Through functional income distribution of an economy

Question 38

The functional income distribution of an economy can be translated into what?

Answer 38

Into a size distribution

Question 39

How to translate the functional income distribution of an economy into a size distribution?

Answer 39

By knowledge of how ownership and control over productive assets and labor skills are concentrated and distributed throughout the population.

Question 40

What does the distribution of the asset holdings and skill endowments ultimately determine?

Answer 40

The distribution of personal income

Question 41

Moderating the size of income distribution at upper levels can be achieved through what?

Answer 41

Progressive taxation of personal income and wealth

Question 42

It refers to money that is available to households for spending and saving after personal income taxes have been deducted.

Answer 42

Diposable income

Question 43

This level represents individuals with the least amount of income in a given population.

Answer 43

Lower Levels

Question 44

Moderating the size of income distribution at lower levels can be achieved through what?

Answer 44

Public expenditures of tax revenues to raise the incomes of the poor either directly or indirectly

Question 45

What are the examples of directly raising the income of the poor?

Answer 45

Conditional or nonconditional cash transfers

Question 46

What are the examples of indirectly raising the income of the poor?

Answer 46

Public employment creation