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WorksheetsDevelopmental Economics Mid Exan For study
Total questions: 15
Worksheet time: 8mins
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
What is relative poverty?
A level of poverty compared to others in society
A situation of having less than $1 per day
A measure of income inequality
A state of absolute deprivation
What is one policy option for poverty reduction?
Reducing access to education
Limiting social services
Increasing the wealth of the richest
Progressive taxation
What does the functional distribution of income focus on?
The average income of households
The wealth of the richest individuals
The share of total national income received by factors of production
Individual income levels
What is a consequence of extreme income inequality?
Increased social stability
Undermined social stability and solidarity
Greater access to education for all
Higher rates of economic growth
What is the main focus of pro-poor growth policies?
Increasing wealth for the richest
Reducing poverty levels without slowing growth
Promoting luxury goods consumption
Encouraging capital flight
