1. A basic income guarantee scheme

will not assure the same monetary gain to everyone if it is financed by a proportional tax.

is a fixed transfer payment to all people below the poverty line

has no administrative cost.

implies that poor people pay positive taxes if the scheme is financed by a proportional tax.

2. Marginal tax rates

All these responses are true.

discourage work when they get close to 100%.

generate incentives that determine the effect of a policy.

can lead to poverty traps when they are high.

3. When we say that there is an "economic gradient" in education attainment we mean that

there is a positive correlation between income and educational attainment.

rich students typically receive higher grades because they can afford tutoring.

the quality of education in a country increases with economic development.

education becomes more expensive as average income rises.

4. Information constraints

may mean that people who are not poor receive benefits from a targeted antipoverty program.

refer to whether poor people are aware of a program that could benefit them.

are influenced by the level of education poor people have.

arise when there are adverse incentive effects from a particular program.

5. How are unconditional cash transfer (UCT) programs different from conditional cash transfer (CCT) programs?

UCT programs do not have compliance requirements.

UCT programs are not targeted.

UCT programs are not promotional.

All these responses are true.

6. Which of the following statements about the protection-promotion tradeoff is false?

The protection-promotion tradeoff can be reduced by using untargeted programs.

"Social investment" programs aim to improve the protection-promotion tradeoff.

The protection-promotion tradeoff is often overstated.

The protection-promotion tradeoff occurs because protection policies can generate incentive effects that discourage promotion.

7. Which of the following is an example of fungibility?

Aid earmarked for one purpose is de facto spent on something else.

A recipient government funds an unproductive project using donor aid.

A recipient government becomes dependent on donor aid after years of receiving support.

Donor aid is tied to political concessions from a recipient government.

8. The Kuznets curve for inequality due to education implies that

inequality may not rise if developing countries expand educational access for the poor.

inequality will fall in poor countries as educational access is expanded.

absolute poverty will fall as educational access expands in poor countries.

relative inequality will rise as access to education expands in rich countries.

9. Which of the following is false about universal subsidies on normal goods?

A larger share of the subsidy will tend to go to poorer people.

The fiscal burden will tend to rise as the economy grows.

There will be public opposition to cutting the subsidy.

The subsidy will reduce absolute poverty.

10. Workfare programs

can enforce a minimum wage rate if the scheme has broad coverage.

have only been implemented during severe recessions.

are examples of untargeted anti-poverty policy.

have no participation costs if only the unemployed participate.