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Chapter 37 Test Bank
Student: ______
1. The minimally adequate living standard for a U.S. family of four is known as the
A. Global poverty standard.
B. Millennium Poverty Goal.
C. United Nations Poverty Goal.
D. U.S. poverty threshold.
2. In 1963 the U.S. poverty standard was equal to
A. $22,000 per year.
B. $10,000 per year.
C. $3,000 per year.
D. $1,000 per year.
3. In 2014 inflation adjusted U.S. poverty threshold was
A. The cost of food and shelter but not other necessities for an individual.
B. The dollar measure of output produced by an individual.
C. An annual income of less than $10,000 for a family of two.
D. An annual income of less than $29,000 for a family of four.
4. Which of the following explains why the U.S. poverty threshold increased from $3,000 per year in 1963 to $29,000 per year in 2014?
A. Americans are more spoiled now than they were in 1963.
B. The threshold includes more luxury items now than it did in 1963.
C. Inflation has caused the price for basic necessities to increase since 1963.
D. The government has become more benevolent than it was in 1963.
5. An annual income of less than $29,000 is
A. In-kind income.
B. Below the poverty threshold.
C. Extreme poverty.
D. The poverty rate.
6. The poverty rate is
A. The percentage of the population that is counted as poor.
B. The income needed for an individual to be above the poverty line.
C. The percentage of the population that receives food stamps.
D. An annual income of less than $29,000 for a family of four in 2014.
7. According to official U.S. statistics, the U.S. poverty rate has been approximately _____ percent for the last 40 years.
A. 5 to 18
B. 12 to 20
C. 4 to 13
D. 11 to 15
8. The direct transfer of goods and services rather than cash is known as
A. In-kind transfers.
B. Transfer payments.
C. Welfare income.
D. Poverty support.
9. Which of the following is not an example of in-kind transfers?
A. Food stamps.
B. Social Security payments.
C. Medicaid benefits.
D. Housing subsidies.
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10. In-kind transfers include the direct transfer of
A. Cash rather than goods.
B. Cash rather than medical services.
C. Goods and services rather than cash.
D. Education rather than housing.
11. In-kind transfers include
A. Transfer payments and food stamps.
B. Public housing and Medicare.
C. Medicaid and unemployment benefits.
D. Social Security benefits and housing subsidies.
12. What is not included in America's poverty count?
A. High school dropouts.
B. Immigrants.
C. Teen moms.
D. In-kind transfers.
13. Which of the following statements is true?
A. American poverty is less severe than global poverty.
B. American poverty standards are below world poverty standards.
C. Approximately 25 percent of Americans live in poverty.
D. American poverty is defined by homelessness and malnutrition.
14. When compared to those in poor countries, poor people in the United States receive
A. About the same amount of goods and services.
B. Somewhat fewer goods and services.
C. Far fewer goods and services.
D. Far more goods and services.
15. U.S. poverty is more about ______deprivation than ______deprivation.
A. meaningful; mild
B. insignificant; relative
C. relative; absolute
D. absolute; significant
16. Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?
A. GDP deflator.
B. Nominal GDP.
C. Per capita GDP.
D. Real GDP.
17. The best measure of average income for a country is
A. Real GDP.
B. Per capita GDP.
C. The economic growth rate.
D. The capital stock of the economy.
18. The World Bank defines severe poverty as
A. An income level of less than $1.25 per person per day.
B. An income level of less than $2.00 per person per day.
C. An income level that does not allow an individual to buy basic necessities.
D. An extreme lack of food.
19. Which of the following statements is true?
A. U.S. GDP per capita is five times larger than the world average.
B. According to world standards, 12 percent of Americans are poor.
C. The poorest nations of the world have average incomes of $5,000.
D. "Extreme poverty" refers to an income of less than $2 per day.
20. U.S. per capita GDP is roughly how much larger than the world average?
A. Twice as large.
B. Three times as large.
C. Four times as large.
D. Five times as large.
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21. Over three-fourths of the world's population lives in households that have an average income of less than _____
per year.
A. $10,000
B. $4,000
C. $2,000
D. $1,000
22. According to the World Bank, "extreme" poverty is defined as an income per person of less than
A. $29,000 per year.
B. $5,000 per year.
C. $2 per day.
D. $1.25 per day.
23. The World Bank defines ______poverty as an income of less than $1.25 per day per person.
A. extreme
B. severe
C. extraordinary
D. relentless
24. According to the World Bank, "severe" poverty is defined as an income per person of less than
A. $8 per day.
B. $5 per day.
C. $2 per day.
D. $1.25 per day.
25. The World Bank defines ______poverty as an income of less than $2 per day per person.
A. exceptional
B. severe
C. extreme
D. significant
26. According to the World Bank, over 1 billion people are classified as being in ______poverty.
A. subsistence
B. severe
C. tremendous
D. extreme
27. According to the World Bank, ______people are classified as being in severe poverty.
A. 100,000 million
B. 500,000 million
C. over 1 billion
D. 2.5 billion
28. According to the World Bank, nearly 3 billion people are classified as being in ______poverty.
A. severe
B. harsh
C. overwhelming
D. extreme
29. Over half of the people who live in extreme poverty in the world live in
A. Nigeria and China.
B. China and India.
C. Bangladesh and El Salvador.
D. Haiti and India.
30. Which of the following countries has the greatest percentage of people living in extreme poverty?
A. India.
B. China.
C. Congo.
D. Bolivia.
31. Which of the following is not associated with global poverty?
A. Lack of medical care.
B. Low mortality rates.
C. Malnourishment.
D. Lack of proper clothing.
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32. Which of the following is associated with global poverty?
A. Lack of prenatal care.
B. Immunization against preventable diseases.
C. Low infant mortality rates.
D. Opportunities for education.
33. Which of the following is not associated with global poverty?
A. The inequality trap.
B. Long life expectancy.
C. Lack of education.
D. Prevalence of HIV.
34. Upward mobility for those in poverty is
A. More likely for people in rich nations than in poor nations.
B. More likely for people in poor nations than in rich nations.
C. Equally likely for people in rich nations and poor nations.
D. Not likely to happen at all because most people live in a caste system.
35. The United Nations'goal of reducing the global rate of extreme poverty to 15 percent by 2015 is known as the
A. Global Poverty Goal.
B. Millennium Poverty Goal.
C. United Nations'Poverty Goal.
D. World Poverty Goal.
36. The Millennium Poverty Goal is the United Nations'goal of reducing the global rate of extreme poverty to ___
percent by 2015.
A. 15
B. 10
C. 5
D. 0
37. The U.N.'s Millennium Poverty Goal is to
A. Keep the number of people in poverty at a constant level.
B. Cut the percentage of people in extreme poverty in half worldwide.
C. Cut the absolute number of people in extreme poverty in half worldwide.
D. Reduce the percentage of people in severe poverty in the poorest nations.
38. The general approaches to global poverty reduction include all of the following except
A. Within-nation redistribution of income.
B. Across-nation redistribution of income.
C. Government growth.
D. Economic growth.
39. The general approaches to global poverty reduction include all of the following except
A. Economic growth that raises average incomes.
B. Redistribution of incomes across nations.
C. Redistribution of incomes within countries.
D. An increase in government control of resources.
40. Income inequality is
A. Not an issue for wealthy countries such as the United States and Germany.
B. A global issue because the poorest tenth of the population gets 20-30 percent of total income.
C. Often greatest in the poorest countries such as Namibia and Botswana.
D. Not an issue in the United States because of the progressive federal tax system.
41. Which of the following is true about income inequality?
A. Inequality tends to be greatest in the poorest countries.
B. Inequality is not an issue for developed countries.
C. Inequality tends to get worse as a country develops.
D. Inequality tends to diminish as the population increases.
42. In which of the following would the richest tenth of the population be most likely to receive the highest percentage of the country's income?
A. Namibia.
B. The United States.
C. The United Kingdom.
D. Japan.
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43. In which of the following would the richest tenth of the population be most likely to receive the highest percentage of the country's income?
A. Sweden.
B. Botswana.
C. Germany.
D. Canada.
44. Income inequalities are greatest in
A. Developed countries such as Japan.
B. Rich countries such as the United States.
C. Poor countries such as Namibia.
D. Countries with high levels of GDP.
45. The U.N.'s Millennium Aid Goal is to raise foreign aid levels to ____ percent of donor country GDP.
A. 0.4
B. 0.7
C. 10.0
D. 15.0
46. Which of the following countries meets or exceeds the U.N.'s Millennium Aid Goal of 0.7 percent of donor country GDP?
A. The United States.
B. Canada.
C. France.
D. Denmark.
47. Which of the following countries meets or exceeds the U.N.'s Millennium Aid Goal of 0.7 percent of donor country GDP?
A. Norway.
B. Australia.
C. The United Kingdom.
D. Japan.
48. The U.N.'s Millennium Aid Goal focuses on aid in the form of
A. Money from rich donor countries.
B. Money from nongovernmental organizations.
C. Redistributions within poor countries.
D. A loan from the United Nations.
49. Which of the following is least likely to reduce poverty?
A. Redirecting resources within the poor nation away from the military.
B. Raising taxes within the poor nation.
C. Receiving foreign aid from rich donor countries.
D. Receiving aid from private charities or NGOs.
50. The United States gives ______percent of its total output to foreign aid
A. 0.28
B. 0.19
C. 0.7
D. 0.4
51. Economic growth
A. Refers to an increase in output.
B. Causes the production possibilities curve to shift inward.
C. Means that capacity has decreased in the short run.
D. Cannot be sustained over time.
52. An increase in output or real GDP is
A. The inequality trap.
B. Productivity growth.
C. Economic growth.
D. The Millennium Poverty Goal.
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53. Which of the following is not true concerning economic growth?
A. It is an increase in real GDP.
B. It can be sustained in the short run but not the long run.
C. It means that the production possibilities have expanded.
D. It's the result of more resources or better technology.
54. An increase in production possibilities is known as
A. Predictable growth.
B. Factor expansion.
C. Upward mobility.
D. Economic growth.
55. Between 2000-2009, the highest economic growth rates in the world have occurred in
A. The United States.
B. China.
C. India.
D. Nigeria.
56. The reduction in world poverty from 1990 to 2014 was due almost entirely to the decrease in poverty in
A. Canada.
B. Mali.
C. China.
D. Ethiopia.
57. One of the keys to reducing poverty is
A. Government control of resources.
B. The redistribution of existing incomes.
C. Increased population growth.
D. Increased economic growth.
58. Which of the following is a critical key to reducing poverty in the poorest nations?
A. Reduced population growth.
B. Reduced human capital.
C. Government ownership of resources.
D. Redistribution of existing income within the nation.
59. Per capita GDP will definitely increase if
A. GDP increases more rapidly than population.
B. GDP and population increase at the same rate.
C. Population increases more rapidly than GDP.
D. Population and GDP decrease at the same rate.
60. Per capita GDP will definitely fall when
A. Population increases.
B. GDP decreases.
C. The labor force decreases.
D. The population growth rate exceeds the economic growth rate.
61. Poverty is most likely to decrease if
A. Population and the economic growth rate both decrease.
B. The population decreases and GDP stays constant.
C. Population grows more rapidly than GDP.
D. The size of the labor force decreases.
62. Poverty is most likely to decrease when
A. Population increases regardless of what happens to economic growth.
B. GDP increases regardless of what happens to population growth.
C. Population growth exceeds economic growth.
D. Economic growth exceeds population growth.
63. The knowledge and skills possessed by the workforce is known as