Income Distribution Quiz 3 (12 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Which policy helps to alleviate poverty?

Correct Answer: A) Both 1 and 2.

2. The things you like and enjoy doing.

Correct Answer: C) Interests.

3. When a household does not have sufficient income to sustain even a basic acceptable standard of living / meet basic needs-it is referred to as

Correct Answer: A) Absolute poverty.

4. In wealthy countries, the poverty line is at US Dollars 2.50 a day.

Correct Answer: B) False.

5. A Gini Coefficent of zero represents .....

Correct Answer: A) Perfect Equality.

6. The poor in the wealthiest countries create serious social problems in society.

Correct Answer: A) True.

7. Benefits that are paid only to those whose incomes fall below a certain level

Correct Answer: D) Means tested benefits.

8. What is the distribution of income?

Correct Answer: B) How incomes are shared out between individuals and households.

9. What is the correct definition of the term income?

Correct Answer: B) The reward for the service provided by a factor of production, including labour.

10. A State pension is an example of

Correct Answer: B) Universal benefits.

11. A value of 0 of Gini Coefficient indicates

Correct Answer: A) Perfect equality.

12. A portion of one's personal income paid to a government (one correct answer)

Correct Answer: C) Income Tax.