On-line Course on Advanced Poverty Analysis – Poverty Dynamics



On-line Course on Advanced Poverty AnalysisModule 1: Quiz1. Poverty isAA lack of command over commodities in general.BA pronounced deprivation in well-being.CLack of capability to function in society.DAll of the above.2. Which of the following is not a reason to go to the trouble and expense of measuring poverty? ATo evaluate the impact of policy interventions geared towards the poor.BTo keep the poor on the agenda of public policy.CTo measure the distributional effects of economic growth.DTo target interventions designed to reduce poverty.3. Is the following statement true or false? The World Bank promotes the Poverty Reduction Strategy Paper process in order to determine to which countries it should lend money.TrueFalse4. Which of the following is not one of the three steps involved in measuring poverty?AGenerating a summary statistic to reflect the degree of poverty.BComputing a Gini coefficient.CDefining an indicator of well-being.DEstablishing a minimum acceptable standard of well-being.5. To measure poverty one needs data based on surveys of individuals or households, and data from all such surveys are useful in measuring poverty.TrueFalse6. You have information based on a regionally stratified random sample of households chosen with clustering. AThis means that regions in the country were first grouped together and then a simple random sample of households was chosen from each of these groupings.BThis implies that any measures of poverty will need to be computed using household or individual weights.CThis means that the standard error of measures of income will be smaller than would be the case with simple random sampling.DThe result is that one cannot generally break down poverty rates by region.7. One commonly-used measure of household welfare is income, which ideally is defined asAWages plus salaries.BEarnings plus remittances.CWages plus profits plus transfer income.DConsumption plus change in net worth.8. Especially in less-developed countries, income as reported in household surveys is typically understated, even by poor people, becauseAPeople forget how much income they made over the past year or even month.BIncome taxes are high.CMost households rent their homes in the informal market.DIllegal income is a large proportion (typically at least a quarter) of household income.9. Expenditure is widely believed to reflect welfare better than incomes, in less-developed countries, becauseAAnnual expenditure is more closely related to life-time (“permanent”) income than is annual income.BHouseholds understate their spending on luxuries.CHousehold surveys tend to ask more questions about expenditure than about income.DThe imputed value of durables (including housing) is included in expenditure but not income.10.The OECD scale measures adult equivalents as follows:AE = 1 + 0.7 (Nadults – 1) + 0.5 Nchildren). Based on this scale, a household consisting of two parents, a grandmother, 2 teenagers and an infant would:AHave a lower adult equivalent expenditure than it would have expenditure per capita.BHave an adult equivalent of 3.4.CHave a higher adult equivalent than a household with five adults.DBecome better off when the eldest teenager becomes an adult.11. A poverty line isAThe minimum expenditure required to fulfill basic needs.BThe threshold consumption needed for a household to escape poverty.CSomewhat arbitrary because the line between poor and non-poor can be hard to define.DAll of the above.12. An absolute poverty line is needed for all of the following except:ATo make international comparisons of poverty rates.BTo evaluation the effects of projects, such as irrigation investments, on poverty.CTo target anti-poverty measures to the poorest quintile of the population.DTo measure the success of government policies in combating poverty.13. In a sample of 5,000 households, 800 households have expenditure levels below the poverty line. This means that the headcount poverty rate:AWas 16%.BWas 0.annot be computed from these numbers.DIs too small to be computed accurately.14. A society consists of four individuals, with the following incomes: 200, 220, 300, and 320. The poverty line is 250. The poverty gap index is then: A0.5.B0.08.C0.16.D20.15. The squared poverty gap index (sometimes referred to as the poverty severity index) is obtained by computing the square of the poverty gap index, which puts more weight on the very poor.TrueFalse16. Because of sampling errorAMeasures of poverty are sample statistics.BIf one were to undertake the same survey again with a different sample, the results would be different.CIt is desirable to present measures of poverty with their confidence intervals (which may require bootstrapping to compute).DAll of the above. ................
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