Income Distribution Quiz 1 (25 MCQs)

Quiz Instructions:

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1. A problem of universal benefits is

2. In most places, the rich will always get richer and the poor will always get poorer.

3. Which of the following does not explain why wealth is unevenly distributed:

4. People living below a certain income threshold or unable to afford certain basic goods & serv

5. Which of the following factors of production gives the reward profit?

6. What is the Gini Index?

7. A social insurance system that provides benefits to Americans who are sick, retired or disabled.

8. What does the Lorenz Curve illustrate?

9. Uneven distribution of income can be due to:

10. A mechanism which means people are forced to stay poor and they cannot escape from poverty.

11. Which does not cause income inequality?

12. The term used for gathering consumer preferences for products and services

13. The average tax rate increases when income increases.

14. It is better to have a Gini Coefficent closer to _____

15. The poor in rich countries are not grateful that they are better off than the poor in really poor countries.

16. Fairness, or an acceptable distribution of income and wealth in society

17. Wages will be higher for individuals who

18. A numerical measure of inequality

19. Income earned from ownership of property

20. GMI stands for _____

21. Studies have shown that the poor in wealthy countries are able to cope better than the poor in poorer countries.

22. The farther away a Lorenz curve for income is from the line of equality, the

23. Figure 1 shows the gap between the richest and the poorest in South Asia is smaller that that in Latin America.

24. Cutting benefits

25. Per the census, approx. what percentage of households from the lowest quintile move to a higher quintile after 10 yrs?