Poverty and Inequality: Causes, Consequences, and Policy Responses

Question 1

Which factor is NOT typically associated with the causes of poverty?

Accepted Answer

Genetic predisposition

Answer

Limited access to education and healthcare

Answer

Unequal distribution of resources

Answer

Political stability

Question 2

What approach to poverty reduction considers a wide range of factors beyond income?

Accepted Answer

Comprehensive approach addressing access to healthcare, education, and empowerment

Answer

Exclusive focus on increasing income levels

Answer

Emphasis on charity and handouts

Answer

Concentration on economic growth alone

Question 3

How does inequality impact access to education and healthcare resources, and what are the broader implications for human well-being?

Accepted Answer

Inequality diminishes access to education and healthcare, contributing to poorer health outcomes and limited economic opportunities.

Answer

Inequality does not affect access to education and healthcare, as everyone has equal opportunities.

Answer

Inequality fosters competition and innovation, benefiting all members of society.

Question 4

The concept of intersectionality in relation to poverty refers to:

Accepted Answer

The ways in which different forms of discrimination, such as racism, sexism, and classism, can overlap and compound to create unique experiences of poverty

Answer

The geographic concentration of poverty in certain regions or neighborhoods

Answer

The relationship between poverty and environmental degradation

Answer

The impact of globalization on the distribution of poverty around the world

Question 5

Microfinance programs typically involve:

Accepted Answer

Providing small loans and financial services to low-income individuals

Answer

Directly subsidizing housing or food for the poor

Answer

Creating employment opportunities through large-scale infrastructure projects

Answer

Distributing emergency aid and relief supplies

Question 6

The Human Development Index (HDI) is a measure of:

Accepted Answer

Human well-being, considering factors like health, education, and standard of living

Answer

Economic prosperity based on GDP per capita

Answer

Environmental sustainability and ecological footprint

Answer

Political stability and governance effectiveness

Question 7

What is the overarching aim of sustainable development?

Accepted Answer

Balancing economic prosperity, social equity, and environmental sustainability

Answer

Prioritizing economic growth over other factors

Answer

Eradicating poverty and inequality, regardless of the consequences

Answer

Protecting the environment, even if it compromises economic or social well-being

Question 8

Which of the following is NOT a commonly used measure of income inequality?

Accepted Answer

Human Development Index (HDI)

Answer

Gini coefficient

Answer

Lorenz curve

Answer

Atkinson index

Question 9

The concept of relative poverty refers to:

Accepted Answer

The inability to maintain a particular standard of living in comparison to others in society

Answer

The absolute lack of basic necessities for survival

Answer

The amount of income earned below the poverty line

Answer

The proportion of the population living in poverty

Question 10

The Gini coefficient is primarily used to measure:

Accepted Answer

Income inequality

Answer

Wealth inequality

Answer

Poverty levels

Answer

Economic growth

Question 11

The concept of 'social exclusion' encompasses:

Accepted Answer

A combination of all the above

Answer

Limited access to essential services and resources

Answer

Discrimination based on personal attributes

Answer

Lack of political representation

Question 12

Which of the following is not a substantial challenge in designing effective policies to address poverty?

Accepted Answer

Rapid technological advancements

Answer

Political resistance

Answer

Insufficient financial resources

Answer

Cultural diversity

Question 13

The concept of 'human capital' refers to:

Accepted Answer

The skills, knowledge, and abilities possessed by a workforce

Answer

The overall health and well-being of a population

Answer

The financial assets owned by individuals

Answer

The natural resources available in a country

Question 14

Which of the following is a potential consequence of inequality?

Accepted Answer

Reduced social and economic mobility

Answer

Increased economic growth and innovation

Answer

Improved health and educational outcomes for all

Answer

Enhanced political stability and social cohesion

Question 15

Which of the following is a characteristic of a progressive tax system?

Accepted Answer

Higher earners pay a greater proportion of their income in taxes compared to lower earners

Answer

Lower earners pay a greater proportion of their income in taxes compared to higher earners

Answer

Taxes are levied based on consumption rather than income

Answer

All earners pay the same percentage of their income in taxes

Question 16

Which of the following is a widely used concept in the measurement of poverty?

Accepted Answer

Poverty line

Answer

Median income

Answer

Gross National Income

Answer

Purchasing Power Parity

Question 17

Which of the following is a potential benefit of reducing poverty?

Accepted Answer

Improved health, education, and economic outcomes for individuals and communities

Answer

Diminished social cohesion and solidarity

Answer

Exacerbated income inequality and wealth concentration

Answer

Increased crime rates and social unrest

Question 18

Which of the following is a common criticism of the Human Development Index (HDI)?

Accepted Answer

It does not fully capture the complexities of human well-being and development

Answer

It is too complex and difficult to calculate

Answer

It overestimates the level of development in some countries

Answer

It is biased towards developed countries

Question 19

Which of the following is **not** considered to be one of the primary causes of poverty?

Accepted Answer

Genetics

Answer

Armed conflict or natural disasters

Answer

Discrimination based on factors such as race, gender, or disability

Answer

Lack of access to education and job opportunities

Question 20

What is widely recognized as a crucial component of successful anti-poverty policies and strategies?

Accepted Answer

Investing in education and skill development for individuals from disadvantaged backgrounds

Answer

Providing tax breaks and incentives to high-income earners and corporations

Answer

Cutting social welfare programs and reducing government spending

Answer

Deregulating the economy and reducing government intervention

Question 21

Which of the following is a commonly used measure of income inequality within a society?

Accepted Answer

Gini coefficient

Answer

Purchasing Power Parity (PPP)

Answer

Gross Domestic Product (GDP)

Answer

Human Development Index (HDI)

Question 22

What is a key ethical argument for addressing income and wealth inequality?

Accepted Answer

It promotes social justice and fairness by reducing disparities in opportunities and outcomes

Answer

It stimulates economic growth and innovation

Answer

It enhances environmental sustainability

Answer

It can lead to lower crime rates and improved public safety

Question 23

What is the Kuznets curve?

Accepted Answer

A hypothesized relationship between income inequality and economic development, suggesting that inequality may initially increase as an economy grows but eventually decline at higher levels of development

Answer

A measure of the intensity of poverty within a population

Answer

A theory of social stratification and class structure

Question 24

Which of the following is a common criticism of trickle-down economics?

Accepted Answer

It often fails to effectively reduce poverty and inequality, as the benefits of economic growth may not trickle down to the poorest and most marginalized segments of society

Answer

It can lead to environmental degradation and resource depletion

Answer

It can result in unsustainable economic growth patterns and financial instability

Answer

It undermines social cohesion and solidarity

Question 25

What is a defining characteristic of absolute poverty?

Accepted Answer

Severe deprivation of basic human needs, such as lack of access to adequate food, clean water, sanitation, and shelter

Answer

Living below a certain income threshold or poverty line defined by a specific country or organization

Answer

Experiencing limited access to education, healthcare, and social services