Poverty

What does the term 'income equality' imply?

• Income is distributed based on the cost of living.
• People earn different amounts based on their skills.
• Everyone earns the same amount regardless of their job.
• Only wealthy individuals have high income.

What is the primary difference between absolute poverty and relative poverty?

• Absolute poverty is a measure of wealth.
• Relative poverty means having no income at all.
• Absolute poverty is only found in urban areas.
• Absolute poverty is about basic needs, while relative poverty is about income comparison.

How does the Minimum Income Standard (MIS) contribute to understanding poverty?

• It measures the total wealth of a country.
• It is the average income of all households.
• It focuses solely on absolute poverty.
• It identifies the lowest amount needed for an acceptable standard of living.

What does the term 'equity' imply in income distribution?

• Wealth should be distributed equally.
• Income should be based on luck.
• Fairness in wage differentials.
• Everyone should earn the same amount.

How does equity relate to income distribution?

• Equity refers to fairness in wage differentials.
• Equity means wealth is distributed equally.
• Equity means everyone earns the same income.
• Equity is not related to income at all.

How does income inequality contribute to poverty?

• It can lead to both absolute and relative poverty.
• It only affects developed countries.
• It has no effect on poverty.
• It ensures everyone has enough income.

Which of the following statements about wage differentials is true?

• Wage differentials do not exist in developed countries.
• Higher qualifications often lead to higher pay.
• Wage differentials are always unfair.
• Everyone should earn the same wage.

What is the main difference between income inequality and wealth inequality?

• Wealth inequality means everyone has the same amount of assets.
• Income inequality is only present in developed countries.
• Wealth inequality refers to differences in the amount of income earned.
• Income inequality refers to the unequal distribution of income to households.

What is the primary focus of income inequality?

• The number of people living in poverty.
• The average income of all citizens.
• The unequal distribution of income to households.
• The total wealth of a country.

Which of the following best describes wealth inequality?

• It refers to differences in the amount of assets that households own.
• It means everyone has equal wealth.
• It only affects developed countries.
• It is the same as income inequality.