Understanding Economic Inequality and Poverty
Question 1
What does the term 'absolute poverty' refer to?
A condition where a person lacks the minimum amount of income needed to meet the basic necessities of life.
A condition where a person's income is below the median income level of a society.
A measurement of poverty based on a person's lack of access to education and healthcare.
A state where a person feels poor compared to the people around them.
Question 2
Which of the following best describes 'relative poverty'?
A scenario where a person does not have the minimum level of income deemed necessary by the government.
A condition where a person lacks the resources to afford basic life necessities anywhere in the world.
A condition where a person is poor in relation to the average standard of living in their society.
A situation where a country's GDP per capita falls below the established international threshold.
Question 3
What is the international poverty line?
A statistical measure that combines various indicators of poverty into a single score.
A monetary threshold under which an individual is considered to be living in poverty, defined by the World Bank.
The median income level of a country, below which a person is considered poor.
A set of guidelines that determine the minimum wage across different countries.
Question 4
Which of the following is a single indicator used in measuring poverty?
The Human Development Index (HDI).
Minimum income standards.
The Multidimensional Poverty Index (MPI).
The Gini coefficient.
Question 5
What does the Multidimensional Poverty Index (MPI) take into account?
A variety of indicators such as health, education, and living standards to measure poverty levels.
The percentage of the population living below the national poverty line.
Only the income level of individuals to determine poverty status.
The economic growth rate of a country to assess the poverty level.
Question 6
Why is measuring poverty challenging?
Poverty can only be measured accurately using expensive and time-consuming surveys.
International organizations cannot agree on a definition of poverty.
Governments often manipulate poverty data for political gain.
Poverty is a complex and multidimensional issue that cannot be captured by a single indicator.
Question 7
What is a common difficulty when setting international poverty lines?
Calculating the total wealth of a country's richest individuals.
Determining the exact number of people who are unemployed in each country.
Assessing the impact of natural disasters on a country's economy.
Adjusting for purchasing power parity to account for differences in the cost of living across countries.
Question 8
Which of the following best explains why poverty measurements may vary between countries?
All countries use the same poverty line set by the United Nations.
Different countries may have varying standards and definitions of what constitutes poverty.
Poverty is a subjective concept that cannot be measured.
Wealthier countries tend to underreport poverty to maintain their international image.
Question 9
How does the concept of relative poverty differ from absolute poverty?
Relative poverty is a fixed threshold, while absolute poverty changes over time.
Relative poverty measures one's economic position compared to the rest of the society, while absolute poverty measures basic subsistence.
Absolute poverty considers income only, while relative poverty includes wealth and assets.
There is no difference; both terms describe the same concept of poverty.
Question 10
What is a limitation of using income as the sole indicator of poverty?
Income is always evenly distributed within households, which can distort poverty measurements.
Most countries do not have the means to accurately record income levels of their citizens.
It does not account for other factors affecting quality of life, such as access to healthcare and education.
Income levels are too variable over time to provide a stable measure of poverty.
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