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POVERTY RATE/INCOME DISTRIBUTION.. MEASURING THE ECONOMY

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

What are some reasons that some workers make more/less than others? (CHOOSE ALL THAT APPLY)

a)

education level

b)

talent/skill level

c)

work habits

d)

family support and values

2.

The POVERTY THRESHOLD is

a)

lowest amount of income that a family can make to maintain a basic standard of living

b)

highest amount of income that a family can make before they are considered rich

c)

lowest amount of taxes that the gov't can collect

d)

highest number of people in a family that is permitted by tax law

3.

The gov't uses the POVERTY RATE to determine..

a)

how much money poor people earn

b)

how many people donate money to charity

c)

how many people are living below the poverty threshold

d)

how much money to take from the rich

4.

Two ways to measure income inequality are..

a)

poverty rate

b)

GINI Index

c)

Lorenz Curve

d)

HS graduation rate

5.

The rich generally pay more in income taxes than the poor (both in percentage of money taxed and in amount paid).

a)

TRUE

b)

FALSE

6.

Some reasons why there is a continuing growth of income inequality include:

a)

the economy is against families living in poverty

b)

more single-parent households

c)

educated/skilled workers are able to demand higher salaries

d)

lower/semi-skilled jobs (manufacturing) are not as available

7.

Over the last 2 decades the poverty rate in the US has continued to grow

a)

TRUE

b)

FALSE

8.

The measurement used to determine the inflation rate is called the ___

a)

GDP

b)

CPI

c)

Poverty Rate

d)

GINI Index

9.

The total dollar value of goods produced by a country in a year is known as the ___

a)

GDP

b)

CSI

c)

Poverty rate

d)

Lorenz Curv

10.

When determining how much a country has produced, adjusting for inflation and price increases, we would use ___ as the measurement

a)

Real GDP

b)

Nominal GDP

c)

CSI

d)

Poverty threshold

11.

when the cost of production continues to increase, it leads to higher prices.

a)

demand pull inflation

b)

wage price spiral

c)

deflation

d)

real GDP

12.

When there is too much money chasing too few goods, you would get _..

a)

demand pull inflation

b)

cost push inflation

c)

deflation

d)

frictional unemployment

13.

A world event, like a war or natural disaster, that cuts off supply of certain goods, leading to higher prices

a)

wage price spiral

b)

demand pull inflation

c)

supply shock

d)

deflation