A. Inequality of market income is lower in Germany than in the US today. B. The US redistributes more income than does Germany. C. Germany was better able to use

A. Inequality of market income is lower in Germany than in the US today. B. The US redistributes more income than does Germany. C. Germany was better able to use taxes and transfers to assure that inequality of living standards did not rise as much as that of market incomes. D. Inequality in market incomes has risen much more in the US than Germany. 2. Which of the following statements is true for Washington, D.C.? A. gh income inequality in Washington, D.C. is a result of recent immigration. B. Poverty rate in Washington, DC is lower than the average for the whole country. C. Washington, D.C. has the same level of inequality as other diverse metropolitan areas in the U.S. D. Washington, DC has the highest inequality of any major city in the US. 3. Which of the following statements is true? A. The global income distribution shows that the minority of the world lived in poverty in 1820. B. The global income distribution has become more unequal over time. C. From 1970-2000, the poor world showed gains relative to the rich world in the global income distribution. D. In 2000, the global income distribution had become bimodal, indicating increased polarization. 4. Progress against absolute pre-tax income poverty in the United States A. All of these options are correct. B. Was on track to be eliminated in the 1980’s, following the prior (post World War 2) trajectory. C. Has been stronger than for consumption poverty. D. Stagnated between 1960 and 2000. 5. The global consumption floor A. Is likely to reach $1.90 per person per day by 2030. B. Has been equal to around $1 per person per day since 1980. C. Has risen above the level of minimum consumption necessary for survival. D. Has been responsive to growth in overall mean consumption. 6. Official poverty measures for the United States reveal that poverty A. Is measured using a relative poverty line B. Is limited to minority races C. Was falling until the mid-1970s. D. Has a higher incidence in rural areas than inner city areas 7. Which of the following statements is not true? A. Between 1990 and 2008, we have made greater progress against poverty in rural areas than in urban areas. B. There has been a ruralization of poverty in Eastern Europe and Central Asia. C. The problem of different incidences of poverty for rural and urban areas is largely a problem of developing countries. D. Due to increased urbanization of poverty, the majority of global poor will reside in urban areas by 2030. 8. The urbanization of poverty can be attributed in part to A. Greater use of anti-poverty policies that target the urban poor B. Urban bias in price surveys C. The poor urbanizing faster than the population as a whole D. Cost of living differentials not incorporated into the urban and rural poverty lines 9. Which of the following statements is false? A. Poverty is either rising or falling depending on whether one considers absolute or relative poverty. B. Absolute inequality is rising in growing economies but falling globally. C. Relative inequality is rising in many countries but is falling globally. D. The incidence of extreme absolute poverty is falling globally. 10. Which of the following statements about the global headcount index is true? A. Poverty fell between 1981 and 2008 if the poverty line used is (z)=$2, and poverty fell between 1990 and 1999 if the poverty line used is (z)=$7. B. Poverty fell between 1981 and 2008 if the poverty line used is (z)=$2. C. Poverty fell between 1990 and 1999 if the poverty line used is (z)=$7. D. None of these options are correct. 11. The graph on Slide 126 of Part 3.1.1 (income dimensions) shows that if the linear trend since 1980 continues, Sustainable Development Goal 1 will be achieved by 2025. is SDG1, and why might this linear projection be unrealistic? The graph on Slide 126 of Part 3.1.1 (income dimensions) shows
that if the linear trend since 1980 continues, Sustainable
Development Goal 1 will be achieved by 2025. is SDG1, and
why might this linear projection be unrealistic?
Poverty rate (%)
A linear projection suggests
World
less
that SDG1 will be achieved
World
HICS
2015 9.98
11.59
2013 11.2
13.05
2012 12.79
14.95
16.05
60
2011 13.72
2010 15.73
18.45
2008 18.16
21.36
50
Rate of decline of about
2005 20.71
24.42
2002 25.49
30.16
1% point per year
1999 28.62
33.98
1996 29.44
35.09
40
1993 33.99
40.69
1990
35.88
43.17
1987
35.33
42.76
1984 39.23
47.8
30
Poverty rate ($1.90 per day)
0
1981 42.12
51.7
Source: PovcalNet (World Bank)
20
o World
oo
10
o World less high-income countries
Reaches
zero in
0
2025 =>
1980
1984
1988
1992
1996
2000 2004
2008
2012 2016
126 12. How do urban vs. rural poverty shares vary across the regions of the world? How have these numbers changed from 1990 to 2008? Point out two stylized facts.

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