Causes of Poverty and Income Inequality

Description: Causes of Poverty and Income Inequality Quiz
Number of Questions: 15
Created by:
Tags: poverty income inequality economics
Attempted 0/15 Correct 0 Score 0

Which of the following is NOT considered a structural cause of poverty?

  1. Lack of access to education

  2. Discrimination

  3. Personal responsibility

  4. Unemployment


Correct Option: C
Explanation:

Personal responsibility is not considered a structural cause of poverty, as it implies that poverty is caused by individual choices rather than systemic factors.

How does income inequality contribute to poverty?

  1. It leads to a more unequal distribution of resources.

  2. It reduces the overall economic growth.

  3. It increases the cost of living for the poor.

  4. All of the above


Correct Option: D
Explanation:

Income inequality contributes to poverty by leading to a more unequal distribution of resources, reducing overall economic growth, and increasing the cost of living for the poor.

Which of the following is NOT a consequence of poverty?

  1. Poor health

  2. Lack of education

  3. Social exclusion

  4. High income


Correct Option: D
Explanation:

High income is not a consequence of poverty, as it implies a state of financial well-being.

What is the term used to describe the concentration of wealth in the hands of a small percentage of the population?

  1. Income inequality

  2. Wealth inequality

  3. Economic inequality

  4. Social inequality


Correct Option: B
Explanation:

Wealth inequality refers to the concentration of wealth in the hands of a small percentage of the population.

How does globalization contribute to income inequality?

  1. It leads to increased trade and investment.

  2. It creates new job opportunities.

  3. It reduces the cost of goods and services.

  4. It exacerbates existing inequalities


Correct Option: D
Explanation:

Globalization can exacerbate existing inequalities by leading to increased competition and job losses in certain sectors, while benefiting others.

Which of the following is NOT a policy measure to address poverty?

  1. Providing social safety nets

  2. Investing in education and healthcare

  3. Promoting job creation

  4. Reducing taxes for the wealthy


Correct Option: D
Explanation:

Reducing taxes for the wealthy is not a policy measure to address poverty, as it does not directly benefit the poor.

What is the term used to describe the idea that economic growth will eventually lead to a reduction in poverty?

  1. Trickle-down economics

  2. Bottom-up economics

  3. Inclusive growth

  4. Sustainable development


Correct Option: A
Explanation:

Trickle-down economics is the idea that economic growth will eventually lead to a reduction in poverty.

How does discrimination contribute to poverty?

  1. It limits access to education and employment opportunities.

  2. It leads to social exclusion and isolation.

  3. It reduces the overall economic growth.

  4. All of the above


Correct Option: D
Explanation:

Discrimination contributes to poverty by limiting access to education and employment opportunities, leading to social exclusion and isolation, and reducing overall economic growth.

Which of the following is NOT a cause of income inequality?

  1. Differences in education and skills

  2. Discrimination

  3. Inheritance

  4. Government policies


Correct Option: C
Explanation:

Inheritance is not a cause of income inequality, as it is a transfer of wealth rather than a factor that generates income.

What is the term used to describe the idea that poverty is caused by a lack of individual effort or motivation?

  1. The culture of poverty

  2. The Protestant work ethic

  3. The bootstrap theory

  4. The deserving poor


Correct Option: A
Explanation:

The culture of poverty is the idea that poverty is caused by a lack of individual effort or motivation.

How does unemployment contribute to poverty?

  1. It reduces household income.

  2. It leads to a loss of skills and experience.

  3. It increases the risk of social exclusion.

  4. All of the above


Correct Option: D
Explanation:

Unemployment contributes to poverty by reducing household income, leading to a loss of skills and experience, and increasing the risk of social exclusion.

Which of the following is NOT a policy measure to address income inequality?

  1. Progressive taxation

  2. Minimum wage laws

  3. Wealth tax

  4. Flat tax


Correct Option: D
Explanation:

A flat tax is not a policy measure to address income inequality, as it does not take into account differences in income levels.

What is the term used to describe the idea that poverty is caused by external factors beyond an individual's control?

  1. Structural poverty

  2. Situational poverty

  3. Chronic poverty

  4. Absolute poverty


Correct Option: A
Explanation:

Structural poverty is the idea that poverty is caused by external factors beyond an individual's control.

How does lack of access to education contribute to poverty?

  1. It limits job opportunities.

  2. It reduces the ability to acquire skills and knowledge.

  3. It increases the risk of social exclusion.

  4. All of the above


Correct Option: D
Explanation:

Lack of access to education contributes to poverty by limiting job opportunities, reducing the ability to acquire skills and knowledge, and increasing the risk of social exclusion.

Which of the following is NOT a consequence of income inequality?

  1. Social unrest

  2. Political instability

  3. Environmental degradation

  4. Economic growth


Correct Option: D
Explanation:

Economic growth is not a consequence of income inequality, as it is a measure of overall economic output.

- Hide questions