Question 1

Which term refers to the total assets of an individual or household minus liabilities?

Accepted Answer

Wealth refers to the total assets owned by an individual or household minus any liabilities or debts they owe.

Question 2

The 2013 poverty threshold for a family with two adults and two children was about

Accepted Answer

The 2013 poverty threshold for a family of four, including two adults and two children, was approximately $23,000 according to the U.S. Census Bureau.

Question 3

Lauri and Ben both work full-time but their annual income is just above the poverty line.They represent those considered

Accepted Answer

Lauri and Ben's income is just above the poverty line, indicating that they are not living in poverty, but are still struggling financially. This fits the definition of "near-poor," which refers to individuals and families whose income is slightly above the poverty line but still insufficient to meet their basic needs.

Question 4

________ poverty refers to a deficiency of material and economic resources compared with some other population.

Accepted Answer

Relative poverty is defined as a lack of resources or income compared to the overall population or a specific group within that population. This type of poverty is relative to the standard of living in a specific society or country. In contrast, absolute poverty (option C) refers to a lack of basic necessities like food, shelter, and healthcare. Comparative poverty (option B) and standardized poverty (option D) are not commonly used terms in poverty measurement.

Question 5

A common working definition of "low income" households is households with incomes that are between ____________ percent of the federal poverty line.

Accepted Answer

The answer of A common working definition of "low income"...

Question 6

The richest 1% of adults in the world own approximately______ of all global household wealth.

Accepted Answer

The answer of The richest 1% of adults in the...

Question 7

Which country owns the largest share of the world's wealth?

Accepted Answer

The United States owns the largest share of the world's wealth, with a significant portion of global assets and investments concentrated in the country.

Question 8

In industrialized countries, national poverty lines are sometimes based on the median household income of a country's population.According to this _____ poverty measure, members of a household are considered poor if their household income is less than 50 percent of the median household income in that country.

Accepted Answer

The description in the question is referring to a relative poverty measure, where the poverty line is based on the relative income of a household compared to the median income in their country.

Question 9

What portion of the world's population lives in extreme poverty?

Accepted Answer

As of recent estimates, approximately 1 in 5 people worldwide live in extreme poverty, defined as living on less than $1.90 a day.

Question 10

The most widely used standard to measure poverty sets extreme poverty at _____ a day in the developing countries.

Accepted Answer

The World Bank's international poverty line for extreme poverty is set at $1.25 a day, which is used to measure poverty in developing countries.

Question 11

The term ________ refers to the lack of resources that leads to hunger and physical deprivation

Accepted Answer

Absolute poverty refers to the lack of resources needed for basic survival, such as food, shelter, and clothing. It is different from relative poverty, which refers to being relatively poor compared to others in society, and socioeconomic inequality, which refers to the unequal distribution of resources and opportunities in a society. The term "lower class" may also be used to refer to those who have lower incomes and fewer resources, but it is not as specific to poverty as absolute poverty.

Question 12

Americans living in households with income below 50 percent of the poverty line are considered to be in

Accepted Answer

Americans living in households with income below 50 percent of the poverty line are considered to be in deep poverty. This is because they are experiencing severe and prolonged economic hardship, with limited access to basic necessities such as food, housing, and healthcare.

Question 13

A social system in which individuals get ahead and earn rewards based on their individual efforts and abilities is a​

Accepted Answer

A meritocracy is a social system in which individuals are rewarded based on their individual effort and abilities. This means that those who work hard and are talented are more likely to succeed and earn rewards, such as promotions or higher salaries. In contrast, a plutocracy is a system in which wealth and power are held by a small group of wealthy individuals, a theocracy is a system in which religious leaders hold power, and a gerontocracy is a system in which elders hold the most power and decision-making authority.

Question 14

Half of the world's poor, as measured by the MPI, live in

Accepted Answer

South Asia is home to a significant portion of the world's poor, as measured by the Multidimensional Poverty Index (MPI), due to factors such as high population density, economic challenges, and social inequalities.

Question 15

The Multidimensional Poverty Index includes all of the following measures of deprivation EXCEPT

Accepted Answer

The Multidimensional Poverty Index measures deprivation in health, education, and standard of living, but not deprivation of affection.

Question 16

Critics of the U.S.poverty line argue that

Accepted Answer

Critics argue that the U.S. poverty line calculation, which was based on food costs in the 1960s, does not accurately represent the cost of living today. Low-income families today spend a much smaller percentage of their income on food, so the poverty line does not reflect the true cost of living.

Question 17

Which of the following is a common measure of the basic needs and income workers require for economic security?

Accepted Answer

The answer of Which of the following is a common...

Question 18

The United States poverty line is calculated as

Accepted Answer

The United States poverty line is calculated as three times the minimum cost of an adequate diet, based on the premise that food should make up one third of a family's budget. This calculation was first developed in the 1960s and has been adjusted for inflation over time.

Question 19

Which of the following is included in the official poverty calculations?

Accepted Answer

The official poverty calculations in the United States are based on pretax income, not accounting for taxes, credits, or assets.

Question 20

Poverty thresholds in the United States differ by all of the following EXCEPT

Accepted Answer

Poverty thresholds in the United States are determined by the number of adults and children in a family and the age of the family head, but they do not vary by region.

Quiz 6: Economic Inequality, Wealth, and Poverty