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The poverty threshold is defined as the minimum income level required for an average adult to afford non-essential luxury goods in a specific region.
Answer: False
The poverty threshold is defined as the minimum income level required to afford essential necessities, not non-essential luxury goods, within a specific region.
Charles Booth popularized the concept of a poverty line in Britain by setting it at a level sufficient for comfortable living, including leisure activities.
Answer: False
Charles Booth investigated poverty in London and established a poverty line, but it was based on the minimum necessary for subsistence, not comfortable living or leisure activities.
Seebohm Rowntree's definition of poverty focused solely on the lack of income, regardless of how it was spent.
Answer: False
Seebohm Rowntree distinguished between primary poverty (lack of income) and secondary poverty (inadequate spending of income), indicating his definition was not solely focused on income level.
Relative poverty is defined as having an income significantly below the global average income.
Answer: False
Relative poverty is defined in relation to the income distribution within a specific society, typically below a certain percentage of the median income, not necessarily the global average.
The measurement of relative poverty assumes that poverty is determined by an individual's income relative to others in their society.
Answer: True
The measurement of relative poverty is predicated on the assumption that an individual's economic standing is defined by their income in comparison to the prevailing income levels within their societal context.
The European Union and OECD commonly use a relative poverty line set at 75% of the median household income.
Answer: False
The European Union and OECD commonly employ a relative poverty line set at 60% of the median household income, not 75%.
Adam Smith argued in 1776 that poverty includes the inability to afford things deemed necessary by societal custom.
Answer: True
Adam Smith posited in 1776 that poverty encompasses not only the lack of basic necessities but also the inability to afford items considered necessary by prevailing societal customs, even for those of lower social standing.
John Kenneth Galbraith defined poverty strictly as having an income below the absolute survival level.
Answer: False
John Kenneth Galbraith defined poverty in 1958 as a state where income falls markedly behind that of one's community, not strictly below the absolute survival level.
Victor Fuchs proposed in 1967 that poverty be defined as earning less than half the median family income.
Answer: True
American economist Victor Fuchs proposed in 1967 that poverty be defined as any family earning less than half the median family income, a definition foundational to contemporary relative poverty measures.
Peter Townsend's 1979 definition of poverty focused exclusively on monetary income levels.
Answer: False
Peter Townsend's 1979 definition of poverty emphasized the lack of resources to obtain adequate diet, participate in customary activities, and maintain living conditions approved by society, extending beyond mere monetary income.
The concept of 'moderate poverty' is synonymous with absolute poverty, focusing solely on survival needs.
Answer: False
Moderate poverty describes a standard of living significantly lower than the majority but sufficient for basic needs, distinguishing it from absolute poverty, which focuses strictly on survival needs.
Using 'poverty' to describe relative poverty is considered misleading by some because it primarily measures income inequality.
Answer: True
Some scholars argue that labeling relative poverty as 'poverty' is misleading, as it primarily quantifies income inequality rather than absolute deprivation. A doubling of all incomes, for instance, would not change the relative poverty rate.
What is the fundamental definition of a poverty threshold?
Answer: The minimum income deemed adequate to cover essential necessities in a specific location.
The poverty threshold, often termed the poverty line, represents the minimum income level deemed adequate to sustain life in a particular geographic context. It is typically established by estimating the aggregate annual cost of essential necessities for an average adult.
Who is credited with popularizing the concept of a poverty line in Britain through investigations in London around the turn of the 20th century?
Answer: Charles Booth
Charles Booth, a social reformer, is credited with popularizing the concept of a poverty line through his extensive investigations in London at the turn of the 20th century.
Seebohm Rowntree distinguished between two types of poverty. What were they?
Answer: Primary poverty and secondary poverty
Seebohm Rowntree distinguished between 'primary poverty,' resulting from insufficient household income, and 'secondary poverty,' arising from the misallocation of adequate income on non-essential items.
Relative poverty is typically defined as having an income below what percentage of the median income within a country?
Answer: 60%
Relative poverty is commonly defined as having an income below 60% of the national median income, reflecting a position significantly lower than the societal average.
Which of the following organizations commonly uses the relative poverty measure?
Answer: The Organisation for Economic Co-operation and Development (OECD)
The Organisation for Economic Co-operation and Development (OECD), along with the European Union and UNDP, commonly utilizes the relative poverty measure in its analyses.
Adam Smith's 1776 perspective on poverty included the inability to afford items considered necessary by:
Answer: Societal custom
Adam Smith argued that poverty includes the inability to afford items deemed necessary by prevailing societal customs, extending beyond mere subsistence requirements.
John Kenneth Galbraith defined poverty in 1958 as a state where income falls markedly behind:
Answer: That of one's community
John Kenneth Galbraith defined poverty in 1958 as a condition where an individual's income falls significantly behind the income levels prevalent within their community.
Victor Fuchs's 1967 proposal for defining poverty is the basis for which common poverty rate calculation?
Answer: The relative poverty rate
Victor Fuchs's 1967 proposal, defining poverty as earning less than half the median family income, forms the basis for the commonly used relative poverty rate calculation.
Peter Townsend's 1979 definition of poverty emphasized the lack of resources to participate in activities and maintain conditions that are:
Answer: Customary or widely approved in their societies
Peter Townsend's definition highlighted the lack of resources to engage in activities and maintain conditions that are customary or widely approved within one's society.
Housing costs, such as rent, typically represent the largest component in the calculation of the poverty line.
Answer: True
Housing expenditures, such as rental costs, frequently constitute the most substantial component within the basket of necessities used to calculate the poverty line.
The poverty line is generally set at a higher level in developing countries compared to developed countries.
Answer: False
In practice, the official poverty line is generally set at a considerably higher monetary value in developed nations compared to developing ones, reflecting divergent standards of living and economic infrastructures.
Mollie Orshansky developed the US poverty threshold by assessing the minimum cost of essential clothing and shelter.
Answer: False
Mollie Orshansky developed the US poverty threshold by multiplying the cost of a USDA economy food plan by a factor of three, based on the assumption that food costs represented one-third of a family's budget.
The World Bank's International Poverty Line (IPL) for extreme poverty is currently set at $2.15 per day in Purchasing Power Parity (PPP).
Answer: True
As of September 2022, the World Bank's International Poverty Line for extreme poverty is established at $2.15 per day in Purchasing Power Parity (PPP).
The World Bank uses a single, uniform IPL of $2.15 per day for all countries, regardless of their income level.
Answer: False
The World Bank employs multiple IPL thresholds: $2.15 per day for extreme poverty, $3.65 per day for lower-middle income countries, and $6.85 per day for upper-middle income countries.
According to UN estimates, the global population living in absolute poverty has remained consistently high since 1800.
Answer: False
UN estimates indicate a significant decline in absolute poverty, from over 80% of the global population in 1800 to approximately 10% by 2015.
The $1.90 per day IPL figure is based on what $1.90 could purchase in the US in 2011, adjusted for Purchasing Power Parity (PPP).
Answer: True
The $1.90 per day IPL figure, based on International Comparison Program (ICP) PPP calculations, represents the international equivalent of what $1.90 could purchase in the US in 2011, reflecting new price levels in developing countries.
The US Census Bureau calculates the poverty line uniformly across all states, ignoring cost-of-living variations.
Answer: True
The US Census Bureau calculates the official poverty line uniformly across the entire nation, without adjusting for significant cost-of-living variations between states or regions.
Government transfers like SNAP significantly decrease the US poverty rate.
Answer: True
Government transfers, including programs like SNAP (Supplemental Nutrition Assistance Program), are integral to household income calculations and are shown to substantially reduce the US poverty rate.
Black Americans, Hispanic Americans, and adults with disabilities experience lower poverty rates than White Americans in the US.
Answer: False
Statistics indicate that Black Americans, Hispanic Americans, and adults with disabilities experience higher poverty rates in the US compared to White Americans.
Children living below the poverty threshold are less likely to experience psychological stress affecting academic performance.
Answer: False
Children living below the poverty threshold are more likely to experience psychological stress that negatively impacts academic performance, alongside other adverse educational outcomes.
The Federal Poverty Level (FPL) is used to determine eligibility for essential healthcare programs like Medicaid in the US.
Answer: True
The Federal Poverty Level (FPL), derived from the poverty threshold, serves as a key criterion for determining eligibility for essential federal programs, including healthcare services like Medicaid.
Poverty mobility in the US indicates that individuals rarely escape poverty once they fall below the threshold.
Answer: False
Poverty mobility in the US suggests that individuals frequently experience periods of poverty but also have opportunities to escape it; it is not a static condition for most.
The US official poverty line calculation is based on modern spending patterns, making it highly accurate for current costs.
Answer: False
The US official poverty line calculation is criticized for being based on outdated spending patterns from 1955, which fails to accurately reflect contemporary living costs and economic realities.
In Poland, the extreme poverty threshold for a single person in late 2019 was approximately 20.17 zloty per day.
Answer: True
In Poland, the extreme poverty threshold for a single-person household in late 2019 was approximately 20.17 Polish zloty per day.
Around 2021, approximately one in six employees in the UK earned less than the 'real living wage'.
Answer: True
In 2021, it was reported that approximately one in six employees in the UK earned less than the 'real living wage', indicating widespread low pay.
India has significantly reduced its poverty levels, lifting approximately 271 million people out of poverty between 2005/06 and 2015/16.
Answer: True
India has demonstrated substantial poverty reduction, lifting an estimated 271 million individuals out of poverty between 2005/06 and 2015/16.
Singapore has an official poverty line that is used to determine eligibility for social assistance programs.
Answer: False
Singapore does not maintain an official poverty line, as policymakers believe it may not fully capture the scope of need and could potentially exclude individuals eligible for assistance.
In 2020, the US poverty threshold for a single person under 65 was approximately $72 per day.
Answer: False
In 2020, the US poverty threshold for a single person under 65 was an annual income of $12,760, which equates to approximately $35 per day, not $72.
The Supplemental Poverty Measure (SPM) used by the US Census Bureau includes housing costs in its calculation.
Answer: True
The Supplemental Poverty Measure (SPM) is a more comprehensive calculation employed by the US Census Bureau that incorporates housing costs, among other factors, into its assessment.
The COVID-19 pandemic led to a decrease in the percentage of UK jobs paid below the National Minimum Wage.
Answer: False
The COVID-19 pandemic was associated with an increase in the percentage of UK jobs paid below the National Minimum Wage in 2020, although it decreased in 2021.
In 2005, India's official poverty line for urban dwellers was set at a higher monthly amount than for rural dwellers.
Answer: True
In 2005, India's official poverty line for urban dwellers was indeed set at a higher monthly monetary value compared to the threshold for rural dwellers.
The expansion of Medicaid under the Affordable Care Act helped reduce healthcare access disparities for low-income individuals.
Answer: True
The expansion of Medicaid facilitated by the Affordable Care Act demonstrably reduced disparities in healthcare access for low-income populations, particularly in states that adopted the expansion.
Which factor typically constitutes the largest portion of the estimated necessities for calculating the poverty line?
Answer: Housing costs
Housing expenditures, such as rental costs, frequently constitute the most substantial component within the basket of necessities used to calculate the poverty line.
How does the poverty line typically differ between developed and developing countries?
Answer: It is considerably higher in developed countries.
In practice, the official poverty line is generally set at a considerably higher monetary value in developed nations compared to developing ones, reflecting divergent standards of living and economic infrastructures.
What method did Mollie Orshansky use to develop the poverty threshold in the United States?
Answer: Multiplying the cost of a food plan by a factor of three.
Mollie Orshansky developed the US poverty threshold by multiplying the cost of a USDA economy food plan by a factor of three, based on the assumption that food represented one-third of a family's expenditures.
What is the World Bank's International Poverty Line (IPL) for extreme poverty as of September 2022?
Answer: $2.15 per day in PPP
As of September 2022, the World Bank's International Poverty Line for extreme poverty is established at $2.15 per day in Purchasing Power Parity (PPP).
Which of the following is NOT one of the World Bank's IPL thresholds mentioned for 2022?
Answer: $5.50 per day for upper-middle income countries
The World Bank's 2022 IPL thresholds include $2.15 (extreme poverty), $3.65 (lower-middle income), and $6.85 (upper-middle income) per day in PPP. $5.50 is not listed as one of these primary thresholds.
According to UN estimates, what was the approximate percentage of the global population living in absolute poverty by 2015?
Answer: 10%
According to UN estimates, the percentage of the global population living in absolute poverty had decreased to approximately 10% by 2015.
In the US, the Federal Poverty Level (FPL) is primarily used for:
Answer: Determining eligibility for federal programs like Medicaid
The Federal Poverty Level (FPL) serves as a primary benchmark for determining eligibility for numerous federal assistance programs, including essential healthcare services like Medicaid.
Which demographic groups in the US face higher poverty rates according to the provided statistics?
Answer: Black Americans, Hispanic Americans, and adults with disabilities
Statistics indicate that Black Americans, Hispanic Americans, and adults with disabilities experience disproportionately higher poverty rates in the United States compared to other demographic groups.
What impact does living below the poverty threshold have on children's educational outcomes?
Answer: Poorer health outcomes, lower graduation rates, and worse academic performance.
Children living below the poverty threshold are more susceptible to adverse educational outcomes, including poorer health, lower academic achievement, and reduced graduation rates, often exacerbated by psychological stress.
The US official poverty line calculation is considered problematic partly because it is based on:
Answer: Outdated spending patterns from 1955
A significant criticism of the US official poverty line is its reliance on outdated spending patterns established in 1955, which fails to accurately reflect contemporary living costs and economic realities.
How do government transfers, such as SNAP, impact the overall poverty rate in the US?
Answer: They help reduce the poverty rate substantially.
Government transfer programs, such as SNAP, play a crucial role in mitigating poverty by substantially reducing the overall poverty rate in the US.
The basic needs approach defines poverty solely based on a country's median income.
Answer: False
The basic needs approach defines poverty based on the minimum resources necessary for long-term physical well-being, rather than solely on income relative to the median.
The basic needs approach was endorsed as a primary objective of development policy in 1976.
Answer: True
The International Labour Organization's World Employment Conference endorsed the satisfaction of basic human needs as a primary objective of development policy in 1976.
Traditional immediate basic needs for poverty discussions include only food and shelter.
Answer: False
Traditional immediate basic needs typically include food, shelter, and clothing, with modern lists often expanding to include sanitation, education, and healthcare.
A 1995 UN declaration defines absolute poverty as severe deprivation of basic human needs, considering both income and access to services.
Answer: True
The 1995 UN declaration from the World Summit on Social Development defines absolute poverty as severe deprivation of basic human needs, encompassing both income and access to essential services.
Critics in 1978 argued that the basic needs approach was overly focused on economic growth.
Answer: False
In 1978, critics argued that the basic needs approach was overly consumption-oriented and anti-growth, rather than being too focused on economic growth.
Relative poverty is not considered a factor that can lead to social exclusion.
Answer: False
Relative poverty can indeed be a significant factor contributing to social exclusion, limiting individuals' access to opportunities and participation in societal activities.
A 'living income' aims for individuals to merely survive, similar to the concept of a poverty line.
Answer: False
A 'living income' aims to provide a 'decent standard of living' and enable individuals to thrive, encompassing more than mere survival, which distinguishes it from the basic subsistence focus of many poverty lines.
A living income, as defined by the Living Income Community of Practice, includes provisions for unexpected events.
Answer: True
The definition of a living income by the Living Income Community of Practice explicitly includes provisions for unexpected events, alongside other necessities for a decent standard of living.
The basic needs approach, introduced in 1976, defines poverty based on:
Answer: The minimum resources necessary for long-term physical well-being.
The basic needs approach defines poverty by the minimum resources required for long-term physical well-being, focusing on essential consumption goods and services.
Which of the following is traditionally considered an immediate basic need in poverty discussions?
Answer: Clothing
Traditional immediate basic needs typically include food, shelter, and clothing. While education and healthcare are crucial, clothing is more consistently cited as an immediate basic need in historical poverty discussions.
According to a 1995 UN declaration, absolute poverty is defined as severe deprivation of basic human needs, depending on both income and:
Answer: Access to services
The 1995 UN declaration defines absolute poverty as severe deprivation of basic human needs, emphasizing its dependence on both income and access to essential services.
Critics in 1978 raised concerns that the basic needs approach was:
Answer: Overly consumption-oriented and anti-growth
In 1978, critics argued that the basic needs approach was overly consumption-oriented and anti-growth, rather than being too focused on economic growth.
What distinguishes a 'living income' from a traditional poverty line?
Answer: A living income aims for 'decency' and thriving, not just survival.
A living income aims to provide a 'decent standard of living' and enable individuals to thrive, encompassing more than mere survival, which distinguishes it from the basic subsistence focus of many poverty lines.
What is a key difference between a living income and a poverty line?
Answer: Living incomes aim for a 'decent' standard of living beyond mere survival.
A living income aims to provide a 'decent standard of living' and enable individuals to thrive, encompassing more than mere survival, which distinguishes it from the basic subsistence focus of many poverty lines.
Peter Edward argues that the World Bank's IPL figures for extreme poverty are too high.
Answer: False
Peter Edward of Newcastle University has argued that the World Bank's International Poverty Line figures for extreme poverty are artificially low, suggesting a higher actual number.
Robert C. Allen proposed using standardized baskets of goods, like the cheapest local grain, to improve global poverty comparisons.
Answer: True
Robert C. Allen proposed utilizing standardized baskets of goods, such as the cheapest local grain, as a method to enhance the accuracy and comparability of global poverty measurements across diverse economies.
David Gordon's definition of absolute poverty requires the absence of at least five specific basic needs.
Answer: False
David Gordon's definition of absolute poverty posits that it is characterized by the absence of any two of eight specific basic needs.
Accurate poverty measurement is not crucial for effective policymaking and development strategies.
Answer: False
Accurate poverty measurement is critically important for effective policymaking, resource allocation, program evaluation, and guiding development strategies.
Poverty data collected through interviews is always highly accurate because people report their income truthfully.
Answer: False
Poverty data collected via interviews is subject to inaccuracies, as reported income may not always be truthful or comprehensive, posing a significant challenge to precise measurement.
National poverty lines are generally comparable across countries due to standardized international definitions.
Answer: False
National poverty lines are generally not comparable across countries because definitions and methodologies vary significantly, lacking standardized international definitions.
Peter Edward of Newcastle University has criticized the World Bank's IPL figures for being:
Answer: Artificially low
Peter Edward has argued that the World Bank's International Poverty Line figures for extreme poverty are artificially low, suggesting that the actual number of individuals living in such conditions is higher than reported.
Robert C. Allen proposed using standardized baskets of goods to address which challenge in global poverty measurement?
Answer: The difficulty in comparing prices between countries
Robert C. Allen proposed using standardized baskets of goods to overcome the challenge of comparing prices and purchasing power across different countries for more accurate global poverty comparisons.
According to David Gordon's definition, what constitutes absolute poverty?
Answer: Two
David Gordon's definition of absolute poverty posits that it is characterized by the absence of any two of eight specific basic needs.
Why is an accurate poverty measure crucial for policymakers?
Answer: To effectively allocate assistance and determine program efficacy
Accurate poverty measurement is critically important for policymakers to effectively allocate resources, evaluate the efficacy of social programs, and guide development strategies.
What is a primary challenge in poverty data collection mentioned in the source?
Answer: Reliance on interviews and reported income, which may be inaccurate
A primary challenge in poverty data collection is the reliance on interviews and self-reported income, which may not always be accurate or comprehensive.
How do varying national poverty lines affect international comparisons?
Answer: They make comparisons difficult because definitions vary significantly.
Varying national poverty lines, due to differing definitions and methodologies, significantly complicate international comparisons of poverty levels.