Developmental Economics Mid Exan For study

What is income inequality defined as?

• The average income of a country

• The total wealth of a nation

• Equal distribution of income among households

• Disproportionate distribution of total national income among households

What does monetary poverty refer to?

• Low incomes and inability to acquire basic goods

• Access to education and healthcare

• Wealth concentration in urban areas

• High income levels

Which method is commonly used to measure income inequality?

• Size distribution

• Functional distribution

• Absolute poverty measurement

• Relative poverty measurement

What does the Lorenz Curve illustrate?

• The distribution of land ownership

• The total wealth of a country

• The proportion of national income earned by a given percentage of the population

• The relationship between poverty and education

What does a Gini Coefficient of 0 indicate?

• Moderate inequality

• Perfect equality

• Perfect inequality

• High poverty levels

What is the poverty line defined as?

• The minimum wage set by the government

• The average income of a country

• A level of income below which individuals are considered in absolute poverty

• A level of income above which individuals are considered wealthy

What is the Total Poverty Gap (TPG)?

• The total income of the richest individuals

• The sum of the difference between the poverty line and actual income levels of the poor

• The average income of the population

• The total number of people living above the poverty line

What does the Kuznets Inverted U-hypothesis suggest?

• Income distribution improves with economic growth

• Income distribution worsens in early stages of growth and improves later

• Poverty levels remain constant during economic growth

• Economic growth has no impact on income distribution

Which group is most overrepresented among the poor?

• Elderly men

• Women

• Urban dwellers

• Children

What is one of the reasons high inequality leads to economic inefficiency?

• Greater access to credit for the poor

• Lower overall rate of saving in the economy

• Increased access to education for all

• Higher investment in local businesses