Quiz 5-1: Facing Economic Challenges

How did President Lyndon B. Johnson contribute to the United States' anti-poverty programs?

• Official minimum income

• Increasing discrimination

• The Civil Rights Act of 1964

• The "War on Poverty"

Match each type of inflation to the best definition.

a

b

Demand-Pull Inflation

Cost-Push Inflation

Which experience would make someone more likely to live in poverty?

• If a new machine has replaced human jobs

• If they did not graduate high school

• If they are a single parent

• All choices are correct.

Which of the following is not an effect of inflation?

• Decreasing real returns on savings​

• Increasing interest rates​

• Eradication of the market basket

• Decreasing value of the dollar​

Which choice best describes poverty threshold?

• A situation in which a person lacks the income and resources to achieve a minimum standard of living​

• Official minimum income (as a dollar amount) needed for the basic necessities of life​

• Percentage of people living in households with incomes below poverty threshold​

• The way income is divided among people in a nation​

Economists define poverty as:

• Percentage of people living in households with incomes below poverty threshold​

• A situation in which a person lacks the income and resources to achieve a minimum standard of living​

• The way income is divided among people in a nation​

• Official minimum income needed for the basic necessities of life​

How do economists define the inflation rate?

• The costs of goods and services frequently purchased by consumers

• Sharp increases in prices of raw materials or energy​

• Measure of the prices of goods and services

• Rate of change in prices over a set period of time​

A small group of people holding most of a nation's wealth is an example of:

• Wealth Inequality

• Socialism

• Income Distribution

• Anti-Poverty Programs

Sharp increases in prices of raw materials or energy are known as:

• market basket

• hyperinflation

• inflation rate

• supply shocks

Match each term to the best definition.

a

b

hyperinflation

deflation