Poverty is generally defined as:
A) The inability to afford luxury goods
B) A lack of access to basic needs and services
C) A temporary economic downturn
D) A government-controlled economic condition
Which of the following is a major cause of income inequality?
A) Equal access to education
B) Wage gaps between skilled and unskilled workers
C) Government subsidies for the poor
D) A uniform taxation system
Which of the following economic systems typically experiences the highest income inequality?
A) Pure capitalism
B) Socialism
C) Mixed economy
D) Communism
One major consequence of extreme income inequality is:
A) Increased economic growth
B) Political and social instability
C) Increased consumer spending
D) Lower poverty rates
A common government policy to reduce poverty is:
A) Reducing the minimum wage
B) Cutting public healthcare programs
C) Implementing progressive taxation
D) Eliminating unemployment benefits
Which international organization primarily works to reduce global poverty?
A) World Bank
B) NATO
C) World Trade Organization (WTO)
D) OPEC
One major reason for persistent poverty in developing nations is:
A) High levels of government corruption
B) Overpopulation in rural areas
C) Lack of technological advancements
D) Strict trade regulations
A key measure to reduce income inequality is:
A) Increasing corporate tax evasion
B) Strengthening access to quality education
C) Reducing social welfare programs
D) Increasing trade barriers
Which of the following is a common poverty alleviation strategy?
A) Promoting job creation
B) Eliminating foreign aid
C) Reducing agricultural productivity
D) Limiting access to financial services
Microfinance institutions help reduce poverty by:
A) Giving high-interest loans to governments
B) Providing small loans to low-income individuals for business activities
C) Funding only large-scale industries
D) Reducing corporate taxation
Which of the following best describes absolute poverty?
A) Earning less than half of the median national income
B) A condition where basic human needs are unmet
C) A temporary reduction in income
D) A government’s failure to collect taxes
One major effect of poverty on society is:
A) Increased political stability
B) Lower crime rates
C) Higher levels of malnutrition and disease
D) Higher savings rates among the poor
Which of the following factors contributes to the gender wage gap?
A) Equal pay laws
B) Occupational segregation
C) Lower tax rates for businesses
D) Increased government spending on education
Which of the following is a structural cause of poverty?
A) Poor individual work ethic
B) Economic policies that favor the wealthy
C) Sudden personal financial loss
D) Unexpected medical expenses
Which indicator is commonly used to measure income inequality?
A) GDP growth rate
B) Gini coefficient
C) Inflation rate
D) Foreign exchange reserves
A major criticism of globalization regarding income inequality is that it:
A) Increases wages for low-skilled workers
B) Benefits only highly skilled workers and large corporations
C) Reduces economic opportunities for everyone
D) Decreases the demand for technological advancements
Which of the following government policies is most effective in reducing poverty?
A) Reducing investments in public services
B) Increasing free access to education and healthcare
C) Eliminating all social welfare programs
D) Increasing taxation on the poor
Which of the following groups is most vulnerable to poverty?
A) Large corporations
B) Highly skilled professionals
C) Uneducated rural populations
D) Stock market investors
Which economic sector often employs the largest number of poor people in developing countries?
A) Financial services
B) Agriculture
C) Real estate
D) Space exploration
Progressive taxation helps reduce income inequality by:
A) Increasing the tax burden on lower-income groups
B) Taxing higher-income groups at a higher rate
C) Eliminating all corporate taxes
D) Reducing minimum wage standards
Which of the following is a major obstacle to reducing poverty?
A) Low interest rates
B) Limited access to education and employment
C) Increase in foreign direct investment
D) High minimum wages
Which of the following best describes the informal economy?
A) Large-scale multinational corporations
B) Economic activities that are not regulated or taxed by the government
C) Government-run businesses
D) High-income professional sectors
Which type of poverty focuses on income levels compared to the rest of society?
A) Absolute poverty
B) Relative poverty
C) Seasonal poverty
D) Generational poverty
Which of the following policies helps to address child poverty?
A) Expanding social safety nets and educational programs
B) Reducing access to public healthcare
C) Increasing corporate monopolies
D) Cutting wages for low-skilled workers
Which sector has the greatest potential for reducing poverty in a developing country?
A) Banking and finance
B) Manufacturing and small enterprises
C) High-end luxury goods
D) Real estate development
Which of the following is a reason why the poor remain trapped in poverty?
A) Lack of access to credit and financial services
B) High levels of personal savings
C) Low corruption rates
D) Overinvestment in technology
Income inequality is often exacerbated by:
A) High social mobility
B) Unequal access to education and job opportunities
C) Fair distribution of wealth
D) Government policies that prioritize low-income groups
