Question 1

The single most important variable explaining the number of people in poverty in a given country is

• the literacy rate
• the HDI
• per capita income
• population

Question 2

Which of the following is used as an index of inequality?

• per capita GDP
• the Consumer Price Index
• the Gini coefficient
• the GDP deflator

Question 3

Kuznets speculated on the relation between growth and inequality, arguing that inequality rose when:

• industrialization and urbanization rose
• everyone remained in the agricultural sector
• service sector jobs reigned supreme as a model for job expansion
• people failed to co-operate

Question 4

Major components of the Washington Consensus are

• macroeconomic stability and economic openness
• the promotion of peace and justice
• exploiting the agricultural sector to fund industrial development
• combating international piracy and terrorism

Question 5

The most recent estimate (as given in the textbook), measured in terms of 2005 PPP dollars, defines "extreme poverty" as living below

• $1.25
• $1.00
• $5.00
• $15.00

Question 6

Evidence shows that in general economic growth in the long run

• is good for the poor
• always harms the poor
• does not affect the poor
• is always jobless

Question 7

In the Pritchett and Kapoor article the authors refer to the following countries in the beginning of their study:

• Bangladesh, Malawi, Mexico
• India, China, Brazil
• United States, Spain, Portugal
• Sub Saharan African countries

Question 8

One of the key findings of the Pritchett and Kapoor study on poverty is that

• poor people live in the tropics
• equal opportunity is still a dream for poor people
• there is a generic lack of confidence among poor people
• local democracies are ineffective in poverty reduction

Question 9

Development economists often look at the distribution of ________ to measure inequality

• affordable housing
• household consumption
• literacy rates
• household savings

Question 10

Poverty tends to greater in _______ areas

• rural
• urban
• industrialized
• low lying