ECON W7

_______ is a mechanism that makes it very difficult for people to escape poverty.

• Poverty rate

• Poverty line

• Poverty trap

• Poverty crisis

______ is when households receive 50% less income than average households income.

• Absolute poverty

• Poverty Line

• Poverty rate

• Relative Poverty

Income inequality cannot be improved by providing more public goods.

• True

• False

Ahmed's income is $4,000 while Tarek's income is $3,000 per month. In this case, Tarek is _____ poor to Ahmed.

• Relatively

• Absolutely

• Officially

• increasingly

One of the benefits of taxation is ______

• Reduction in poverty rate

• Creating unearned income

• Market distortion

• Incentives

Ownership of resources is a _____ cause for inequality.

• international

• national

• professional

• individual

An unequal distribution of income among the population in the nation is called ______.

• Income inequality

• Wage inequality

• salary inequality

• distribution inequality

What do people falling under absolute poverty lack?

• luxuries

• internet

• basic needs

• facilities

What curve shows income inequality?

• PPF

• Lorenz

• Supply

• Demand

How can a decline in overall national growth lead to poverty?

• improves business opportunities

• cuts government social programs

• reduces unemployment

• increases income and wages