Poverty TR Quiz 3 Answers

Poverty TR Quiz 3 Answers - Inequality involves an unequal...

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Quiz # 3: Economics of Poverty – Econ 4350 – Fall 2009 – TR Name: 1. T F . The United States has one of the highest levels of income inequality among the more developed nations. 2. T F . If the World Bank decides to use the United States official poverty line instead of the current World Bank poverty thresholds, more than 75% of the people on earth will be counted as poor. 3. T F . A tripling of foreign aid would come close to curing global poverty. 4. T F . Permanent income refers to a fixed amount of income every year. 5. T F . Unequal outcomes are inherently unfair. 6. Distinguish between the concepts of “inequity” and “inequality”.
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Unformatted text preview: Inequality involves an unequal distribution of income and/or wealth. Inequity means “not fair”. If there is status mobility, then inequalities are not necessarily unfair. 7. How does economic growth affect poverty rates? Is the relationship between the two positive or negative? Can you give any examples? There is a negative relationship between economic growth and poverty rates. Economic growth reduces poverty rates through job creation. For example, China and India managed to reduce their poverty rates by achieving high rates of economic growth....
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