20 Questions
What is poverty?
A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living
How is poverty typically measured?
By the per capita expenditures made by the household
What does poverty affect besides the ability to purchase goods?
Vulnerability towards various pressures that may prohibit an individual from enjoying life
Where does poverty typically arise from?
Multiple factors such as employment, health, education, and housing
What is the main focus when discussing poverty?
Government's responsibility in addressing poverty
What is the main indicator of poverty and vulnerability?
Purchasing power
What $ amount was the international poverty line updated to in September 2022?
$2.15 per person/day
What is the goal of the International Poverty Line set by the World Bank?
To track global extreme poverty
How does the poverty line vary between the United States and Ethiopia?
It is more than 10 times lower in Ethiopia than in the United States
What does the total family income divided by the family size help determine?
Per capita income
What is one of the main factors that can contribute to an individual experiencing poverty?
Lack of access to healthcare
How is poverty typically assessed?
By purchasing power or per capita expenditures
What does poverty affect besides the ability to purchase goods?
Access to quality education
What is a key indicator of vulnerability associated with poverty?
Poor living conditions including inadequate housing and sanitation
Why is poverty considered a multi-faceted phenomenon?
As it affects not only the ability to purchase goods, but also vulnerability towards various pressures
What is the significance of the International Poverty Line set by the World Bank?
To measure poverty based on a consistent threshold across different countries
Why is it important to periodically update the global poverty line according to the text?
To reflect changes in price levels across the world and to track global extreme poverty
What is the primary purpose of a country's national poverty line according to the text?
To underpin policy dialogue or target programs to reach the poorest within the country
How does the global extreme poverty rate change after the adoption of the new PPP and poverty line according to the text?
The global extreme poverty rate may not be dramatically different, but some regional and country rates may fluctuate considerably
What is the main indicator of poverty and vulnerability according to the text?
Purchasing power
Study Notes
What is Poverty?
- Poverty is a multifaceted phenomenon that affects an individual's overall well-being beyond just their ability to purchase goods.
Measuring Poverty
- Poverty is typically measured by the World Bank's International Poverty Line (IPL), which is the main indicator of poverty and vulnerability.
- The IPL was updated to $2.15 per day in September 2022.
- The goal of the IPL is to provide a global benchmark for extreme poverty.
Poverty's Impact
- Poverty affects not only the ability to purchase goods but also education, health, and overall well-being.
- One key indicator of vulnerability associated with poverty is a lack of access to healthcare and education.
Poverty's Origins
- Poverty can arise from various factors, including low income, unemployment, and lack of access to education and healthcare.
Poverty Lines
- The poverty line varies between countries, with the United States having a higher poverty line than Ethiopia, for example.
- A country's national poverty line is used to determine the poverty threshold for its citizens.
- The total family income divided by the family size helps determine the poverty threshold.
Assessing Poverty
- Poverty is typically assessed by considering an individual's income, education, health, and access to basic services.
Poverty as a Multifaceted Phenomenon
- Poverty is considered a multifaceted phenomenon because it affects various aspects of an individual's life, including education, health, and overall well-being.
Importance of Updating the Poverty Line
- It is important to periodically update the global poverty line to reflect changes in the cost of living and to ensure that the poverty threshold remains relevant.
Impact of the New Poverty Line
- The global extreme poverty rate changes after the adoption of the new PPP and poverty line.
This quiz covers the key concepts discussed in Lecture #5 on Poverty and Inequality in the field of Economic Development, presented by Professor Cherrie Nuez. It also includes a disclaimer regarding the educational use of the presentation materials.
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