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What is redlining?

• The drawing of a red line across neighborhoods

• The process of drawing red lines to show the neighborhoods where people of color lived and lenders wouldn't make loans there.

• A red line on a map that shows where wealthy people and poor people live today.

• The process of drawing red lines to show people that neighborhoods were not equal.

Answer explanation

Redlining refers to the discriminatory practice of marking neighborhoods predominantly inhabited by people of color, indicating areas where lenders would refuse to provide loans, thus perpetuating economic inequality.

Which of the following is NOT a negative effect of gentrification?

• Displacement

• Minority Removal

• Higher Quality of Living

• Higher cost of living

Answer explanation

Higher Quality of Living is not a negative effect of gentrification; it often results from improvements in infrastructure and services. In contrast, displacement, minority removal, and higher costs are negative consequences.

True or False

Rent increases may occur as a result of gentrification

• True

• False

Answer explanation

True. Gentrification often leads to an influx of higher-income residents, which can drive up demand for housing and subsequently increase rent prices in the affected areas.

Wal-Mart is opening in Vado, New Mexico, creating over 400 jobs. Population is increasing. This is an example of...

• Urbanization

• Inflation

• Urban Center

• Influence

Answer explanation

This situation illustrates urbanization, as the opening of Wal-Mart and the creation of jobs attract more people to Vado, leading to population growth and changes in the local economy.

What is the term for the bank taking possession of a property due to unpaid mortgage?

• Foreclosure

• Bankruptcy

• Credit

Answer explanation

Foreclosure is the legal process where a lender takes possession of a property due to the owner's failure to pay the mortgage. This matches the action described in the question, making it the correct answer.

How can gentrification be damaging to the local economy?

• It can cause local businesses to shut down

• It can create new jobs opportunities

• Ethnic and racial conflict can emerge

• It attracts middle and upper people to a residential area

Answer explanation

Gentrification can lead to rising rents and property values, which often forces local businesses that cater to lower-income residents to shut down, negatively impacting the local economy.

Which business indicates gentrification?

• A family owned business

• Starbucks

• a local antique shop

• a 100-year running bakery

Answer explanation

Starbucks is often seen as a symbol of gentrification, as its presence typically indicates an influx of higher-income residents and a shift in the local economy, unlike family-owned or long-standing local businesses.

Which group is most likely to see gentrification as positive?

• a family living in an urban area for cheap

• a wealthy couple looking to move into the city

• employees of a small business located in the city

• residents of a part of the city that is steeped in culture

Answer explanation

A wealthy couple looking to move into the city is likely to view gentrification positively, as it often leads to improved amenities, increased property values, and a more desirable living environment, aligning with their interests.

What demographic shift is typical in a newly gentrified neighborhood?

• Higher median income, fewer racial minorities, fewer families

• Lower median income, fewer racial minorities, more families

• Higher median income, more racial minorities, more families

Answer explanation

During gentrification, neighborhoods typically see an influx of higher-income residents, leading to a higher median income. This often results in fewer racial minorities and families, as original residents may be displaced.

What is the phenomenon called when many white people move from the city to the suburbs?

• Urbanization

• White Flight

• Gentrification

• Red-lining

Answer explanation

The term 'White Flight' refers specifically to the mass movement of white people from urban areas to suburban areas, often in response to demographic changes. This distinguishes it from urbanization, gentrification, and red-lining.