Chapter (4&5) Questions

Chapter (4) MCQs

1. …………. Is the measure most commonly used by economists to measure inequality
a. Size distributions
b. Lorenz curves
c. Gini coefficients
d. Functional distributions
2. …… simply deals with individual persons or households and the total incomes they receive
a. Size distributions
b. Lorenz curves
c. Gini coefficients
d. Functional distributions
3. When using size distribution of income,
a. The source of income is considered
b. It is important to classify the income earned according to sector
c. The way in which that income was received is not considered
d. None of the above
4. …………….. Is the distribution of income according to size class of persons
a. Personal distributions
b. Lorenz curves
c. Gini coefficients
d. Functional distributions
5. When using size distribution of income, dividing the population into successive fifths is
a. Quintiles
b. Deciles
c. Sole
d. None of the above
6. When using size distribution of income, dividing the population into successive tenths is
a. Quintiles
b. Deciles
c. Sole
d. None of the above
7. ……………. Refers to a 20% proportion of any numerical quantity
a. Quintiles
b. Deciles
c. Sole
d. None of the above
8. A population divided into quintiles would be divided into …………. Groups of equal size
a. 1
b. 2
c. 5
d. 10
9. ……………. Refers to 10% portion of any numerical quantity.
a. Quintiles
b. Deciles
c. Sole
d. None of the above

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10. A population divided into deciles would be divided into …………. Groups of equal size
a. 1
b. 2
c. 5
d. 10
11. ….. Is the ratio of the incomes received by the top 20% and bottom 40% of the population
a. Lorenz ratio
b. Gini ratio
c. Kuznets ratio
d. None of the above
12. .. Is a graph depicting the variance of the size distribution of income from perfect equality
a. Lorenz curve
b. Gini curve
c. Kuznets curve
d. None of the above
13. In lorenz curves, the numbers of income recipients are plotted on the
a. Vertical axis
b. Horizontal axis
c. Cross axis
d. None of the above
14. In lorenz curves, the numbers of income recipients are plotted in
a. Absolute percentages
b. Cumulative percentages
c. Independent percentages
d. None of the above
15. In lorenz square, the diagonal line drawn from the lower left corner (the origin) of the
square to the upper right corner is called
a. Perfect equality line
b. Perfect inequality line
c. Relative inequality line
d. None of the above
16. The more the lorenz line curves away from the diagonal line, the ……….. The degree of
inequality represented.
a. Greater
b. Lower
c. Perfect
d. None of the above
17. …………………. Is an aggregate numerical measure of income inequality ranging from 0 to 1
a. Lorenz coefficient
b. Gini coefficient
c. Kuznets coefficient
d. None of the above
18. Gini coefficient ranges from
a. 0 to infinity
b. -1 and +1
c. Can be any value
d. None of the above
19. According to gini coefficient, 0 represents
a. Perfect equality
b. Perfect inequality
c. Relative equality
d. Relative inequality

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20. According to gini coefficient, 1 represents
a. Perfect equality
b. Perfect inequality
c. Relative equality
d. Relative inequality
21. …………….. Is measured graphically by dividing the area between the perfect equality line
and the lorenz curve by the total area lying to the right of the equality line in a lorenz
diagram.
a. Lorenz coefficient
b. Gini coefficient
c. Kuznets coefficient
d. None of the above
22. …………….. Is the second common measure of income distribution used by economists
a. Size distributions
b. Lorenz curves
c. Gini coefficients
d. Functional distributions
23. …………. Attempts to explain the share of total national income that each of the factors of
production receives.
a. Size distributions
b. Lorenz curves
c. Gini coefficients
d. Functional distributions
24. International poverty line
a. Knows no national boundaries
b. Independent of the level of national per capita income
c. Takes into account differing price levels by measuring poverty
d. All of the above
25. International poverty line sets for …………. Per day in ppp dollars.
a. $1.25
b. $1.5
c. $1.75
d. None of the above
26. Total poverty gap =
a. ∑𝐻𝑖=1(𝑌𝑖 − 𝑌𝑝 )
b. ∑𝑯𝒊=𝟏(𝒀𝑷 − 𝒀𝒊 )
c. (𝑌𝑃 − 𝑌𝑖 )
d. (𝑌𝑖 − 𝑌𝑝 )
27. ……………. Is the amount of money per day it would take to bring every poor person in an
economy up to our defined minimum income standards.
a. Total poverty gap
b. Average poverty gap
c. Normalized poverty gap
d. Average income shortfall
28. ………….. Is found by dividing the tpg by the total population
a. Total poverty gap
b. Average poverty gap
c. Normalized poverty gap
d. Average income shortfall
29. Normalized poverty gap =
a. Apg/yp
b. Tpg/yp
c. Ais/yp
d. None of the above

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30. …………… is the total poverty gap divided by the headcount of the poor
a. Total poverty gap
b. Average poverty gap
c. Normalized poverty gap
d. Average income shortfall
31. Normalized income shortfall =
a. Apg/yp
b. Tpg/yp
c. Ais/yp
d. None of the above
32. Multidimensional poverty index focuses on deprivations in
a. Standard of living
b. Health
c. Education
d. All of the above
33. In calculating multidimensional poverty index, health consists of
a. Two indicators with equal weight
b. Four indicators with equal weight
c. Six indicators with equal weight
d. None of the above
34. ……………… is a component of health in calculations of multidimensional poverty index
a. Whether any adult or child in the family is malnourished
b. Whether no household member completed 5 years of schooling
c. Insufficiently safe drinking water
d. Unimproved cooking fuel
35. In calculating multidimensional poverty index, education consists of
a. Two indicators with equal weight
b. Four indicators with equal weight
c. Six indicators with equal weight
d. None of the above
36. …………… is a component of education in calculations of multidimensional poverty index
a. Whether any child has died in the family
b. Whether any school-aged child is out of school for grades 1 through 8
c. Lack of electricity
d. Inadequate sanitation
37. In calculating multidimensional poverty index, standard of living consists of
a. Two indicators with equal weight
b. Four indicators with equal weight
c. Six indicators with equal weight
d. None of the above
38. …………….. Is a situation in which if a person already identified as poor becomes deprived in
another indicator she is measured as even poorer
a. Multidimensional monotonicity
b. Dimensional monotonicity
c. Dimensional poverty
d. None of the above
39. Economists concerned with inequality among those above the poverty line because
a. Extreme income inequality leads to economic inefficiency
b. Extreme income disparities undermine social stability and solidarity
c. Extreme inequality is generally viewed as unfair
d. All of the above

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40. ……………… used lorenz curves to analyze three limiting cases of dualistic development
a. Adam smith
b. Gary fields
c. John keynes
d. None of the above
41. .............. Is a dualistic development in which the two-sector economy develops by enlarging
the size of its modern sector while maintaining constant wages in both sectors.
a. The modern-sector enlargement growth typology
b. The modern-sector enrichment growth typology
c. The traditional-sector enrichment growth typology
d. None of the above
42. .............. Is a dualistic development in which the economy grows but such growth is limited
to a fixed number of people in the modern sector
a. The modern-sector enlargement growth typology
b. The modern-sector enrichment growth typology
c. The traditional-sector enrichment growth typology
d. None of the above
43. .............. Is a dualistic development in which all of the benefits of growth are divided among
traditional-sector workers, with little or no growth occurring in the modern sector.
a. The modern-sector enlargement growth typology
b. The modern-sector enrichment growth typology
c. The traditional-sector enrichment growth typology
d. None of the above
44. Traditional-sector enrichment growth causes the lorenz curve to
a. Shift uniformly upward and closer toward the line of equality
b. Shift downward and farther from the line of equality
c. Cross
d. None of the above
45. Modern-sector enrichment growth causes the lorenz curve to
a. Shift uniformly upward and closer toward the line of equality
b. Shift downward and farther from the line of equality
c. Cross
d. None of the above
46. Lewis-type modern-sector enlargement growth causes the lorenz curve to
a. Shift uniformly upward and closer toward the line of equality
b. Shift downward and farther from the line of equality
c. Cross
d. None of the above
47. ………………… is a graph reflecting the relationship between country's income per capita
and its equality of income distribution
a. Lorenz curve
b. Gini curve
c. Kuznets curve
d. None of the above
48. According to kuznets, in the process of development inequality in an economy will
a. Rise and then fall
b. Fall and then rise
c. Continue to fall
d. Continue to rise

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49. There are many reason why policies focused toward reducing poverty levels need not
lead to a slower rate of growth like
a. Widespread poverty creates conditions in which the poor have no access to credit
b. The rich in many contemporary poor countries are generally not noted for their
frugality
c. The low incomes and low levels of living for the poor can lower their economic
productivity
d. All of the above
50. There are many policy options for developing countries that aim to reduce poverty
including
a. Altering the functional distribution of income through relative factor prices
b. Modifying the size distribution through increasing assets of the poor
c. Direct transfer payments and the public provision of goods and services
d. All of the above

# Ans. # Ans. # Ans. # Ans. # Ans.

1 A 11 C 21 B 31 C 41 A
2 A 12 A 22 D 32 D 42 B
3 C 13 B 23 D 33 A 43 C
4 A 14 B 24 D 34 A 44 A
5 A 15 A 25 D 35 A 45 B
6 B 16 A 26 B 36 B 46 C
7 A 17 B 27 A 37 C 47 C
8 C 18 D 28 B 38 B 48 A
9 B 19 A 29 A 39 D 49 D
10 D 20 B 30 D 40 B 50 D

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 Chapter (5) MCQs
1. ……………… is The phenomenon whereby population continues to increase even after a fall
in birth rates
a. False momentum of population growth
b. Hidden momentum of population growth
c. The Malthusian Population Trap
d. None of the above
2. Population continues to increase even after a fall in birth rates because
a. Failure of country to control birth rates
b. Large existing youthful population
c. Rich people do not care about number of children
d. None of the above
3. Reasons for the hidden momentum of population growth include
a. High birth rates cannot be altered substantially overnight
b. Forces that have influenced fertility rates over the course of centuries do not simply
evaporate at the urging of national leaders.
c. The age structure of many developing countries' populations.
d. All of the above
4. Population will not stabilize until after ……………..
a. One generation
b. Couple of generations
c. Three generations
d. None of the above
5. The process by which fertility rates eventually decline to replacement levels is called
a. Population transition
b. Demographic transition
c. Rural transition
d. None of the above
6. …………….. Attempts to explain why all contemporary developed nations have more or less
passed through the same three stages of modern population history.
a. Population transition
b. Demographic transition
c. Rural transition
d. None of the above
7. The first stage in demographic transition is characterized by
a. High birthrates and death rates
b. Continued high birthrates, declining death rates
c. Falling birthrates and death rates
d. All of the above
8. The second stage in demographic transition is characterized by
a. High birthrates and death rates
b. Continued high birthrates, declining death rates
c. Falling birthrates and death rates
d. All of the above
9. The last stage in demographic transition is characterized by
a. High birthrates and death rates
b. Continued high birthrates, declining death rates
c. Falling birthrates and death rates
d. All of the above

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10. …………… is The idea that rising population and diminishing returns to fixed factors result
in a low levels of living
a. False momentum of population growth
b. Hidden momentum of population growth
c. The Malthusian Population Trap
d. None of the above
11. The Malthusian population trap assumes that fertility ………….. With per capita income.
a. Increases
b. Decreases
c. Independent
d. None of the above
12. Malthusian Model is criticized for
a. Impact of technological progress
b. No positive correlation between population growth and levels of per capita income in
the data
c. Microeconomics of family size
d. All of the above
13. The Demand for Children in Developing Countries viewed First two or three as
a. Consumer goods
b. Investment goods
c. Luxury goods
d. None of the above
14. The Demand for Children in Developing Countries viewed Additional children after second
or third as
a. Consumer goods
b. Investment goods
c. Luxury goods
d. None of the above
15. Demand for Children depends on
a. Level of household income
b. “net” price of children
c. Price of all other goods
d. All of the above
16. Fertility lower if
a. Raise women’s education
b. Rise in family income levels
c. Expanded schooling opportunities
d. All of the above
17. The real problem is not population growth but
a. Underdevelopment
b. Population Distribution
c. Subordination of women
d. All of the above
18. Population Growth may be a Real Problem because
a. Poverty and Inequality
b. Adverse impact on education
c. Impact on the environment
d. All of the above
19. Developing Countries Can Do the following to limit population growth
a. More open migration policies
b. Research into technology of fertility control
c. Persuasion through education
d. All of the above

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20. Developed Countries Can Help Developing Countries with Their Population Programs
through
a. Raise the socioeconomic status of women
b. Address resources use inequities
c. Financial assistance for family planning programs
d. All of the above

# Ans. # Ans. # Ans. # Ans. # Ans.

1 B 5 B 9 C 13 A 17 D
2 B 6 B 10 C 14 B 18 D
3 D 7 A 11 A 15 D 19 C
4 B 8 B 12 D 16 D 20 C

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