Poverty and Development Quiz
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Questions and Answers

How does relative poverty differ from absolute poverty?

  • Absolute poverty is defined by societal standards. (correct)
  • Relative poverty considers wealth distribution within a society. (correct)
  • Absolute poverty focuses on social positions.
  • Relative poverty is based on absolute income levels.
  • What is the primary measure used by the OECD and EU to define relative poverty?

  • Income 50% lower than the median household income. (correct)
  • Availability of basic necessities.
  • Income below the national average.
  • Overall wealth compared to global standards.
  • What crucial link does the concept of relative poverty establish?

  • Between poverty and crime rates.
  • Between poverty and individual health.
  • Between poverty and government policies.
  • Between poverty and wealth distribution. (correct)
  • What defines those categorized under relative poverty?

    <p>Those feeling deprived compared to societal standards.</p> Signup and view all the answers

    What is a key characteristic of absolute poverty?

    <p>It can be objectively measured.</p> Signup and view all the answers

    In the context of social hierarchy, how is poverty commonly perceived?

    <p>As a social condition influenced by relative status.</p> Signup and view all the answers

    What does reducing poverty ultimately require according to the content?

    <p>Wealth redistribution and equality promotion.</p> Signup and view all the answers

    According to this concept, how are individuals categorized as 'poor'?

    <p>By their available income compared to others.</p> Signup and view all the answers

    What is the central mechanism for generating wealth according to classical liberal economics?

    <p>The market</p> Signup and view all the answers

    How do green politics differ from traditional economic growth perspectives?

    <p>By promoting 'development as sustainability'</p> Signup and view all the answers

    What do feminists highlight as crucial for development according to some perspectives?

    <p>Overturning gender inequality</p> Signup and view all the answers

    What do liberal theorists believe causes 'development failures'?

    <p>Internal societal factors</p> Signup and view all the answers

    Which of the following is a characteristic of peripheral areas according to classical liberal economics?

    <p>Low wages</p> Signup and view all the answers

    What aspect does cosmopolitan theorists emphasize in their understanding of development?

    <p>Advancing global justice</p> Signup and view all the answers

    What potential conflict is associated with 'development as growth' according to alternative perspectives?

    <p>It neglects ecological impacts</p> Signup and view all the answers

    Which of the following factors does NOT contribute to the internal societal issues that affect development?

    <p>Global economic sanctions</p> Signup and view all the answers

    What is suggested as a potential benefit of widening inequality?

    <p>It may drive economic growth.</p> Signup and view all the answers

    What do economic liberals argue about social levelling?

    <p>It can lead to economic stagnation.</p> Signup and view all the answers

    According to the perspective discussed, which is seen as less important than freedom?

    <p>Distribution of income.</p> Signup and view all the answers

    Which phase in industrial development may be associated with widening inequality?

    <p>Take-off phase.</p> Signup and view all the answers

    What did the end of empire in the 1950s and 1960s primarily impact?

    <p>Political dynamics in developing countries.</p> Signup and view all the answers

    What aspect of society should individuals have, according to the discussion?

    <p>Opportunities to rise or fall based on personal drive.</p> Signup and view all the answers

    What is considered an issue of global justice in the context of state development?

    <p>The political independence of states.</p> Signup and view all the answers

    What criticism is leveled against the relatively egalitarian structures of state socialist regimes?

    <p>They hinder economic growth.</p> Signup and view all the answers

    What was one significant method of reform mentioned in the content?

    <p>Privatizing government-owned industries</p> Signup and view all the answers

    Which consequence did structural adjustment often lead to in countries like Chile and Argentina?

    <p>Economic disruption and political instability</p> Signup and view all the answers

    What was a notable difference in recovery after the 1997 Asian financial crisis?

    <p>Malaysia rejected IMF loans and conditions</p> Signup and view all the answers

    According to analysts like Joseph Stiglitz, what was a drawback of SAPs?

    <p>Greater poverty and welfare cuts</p> Signup and view all the answers

    What effect did reducing government spending typically have on welfare provisions?

    <p>Cuts that disproportionately impacted vulnerable populations</p> Signup and view all the answers

    What did the content suggest about exposing weak economies to foreign competition?

    <p>It led to decreased wages and higher unemployment</p> Signup and view all the answers

    Which countries are mentioned as examples of ineffective adoption of economic reforms?

    <p>Argentina and Mexico</p> Signup and view all the answers

    What is an implication of the experiences of China and India regarding economic reforms?

    <p>National strategies enhance the effectiveness of pro-export reforms</p> Signup and view all the answers

    What was a primary focus of increased foreign investment mentioned?

    <p>Producing consumer goods for global markets</p> Signup and view all the answers

    What is one criticism of Structural Adjustment Programs (SAPs)?

    <p>They reflect the interests of major donor states more than developing nations.</p> Signup and view all the answers

    How are the decision-makers in the IMF and World Bank characterized?

    <p>They often lack insight into the issues facing developing countries.</p> Signup and view all the answers

    What approach did industrially advanced countries historically take towards their industries?

    <p>They initially protected their industries from foreign competition.</p> Signup and view all the answers

    What was a major flaw of the model underlying SAPs as per the critique?

    <p>It is not aligned with the historical paths taken by developed nations.</p> Signup and view all the answers

    What do critics suggest about the concept of an open economy as related to development?

    <p>It should be viewed as a consequence of development.</p> Signup and view all the answers

    During which decade did the criticism of SAPs escalate significantly?

    <p>1990s</p> Signup and view all the answers

    What do proponents of SAPs argue they will create in relation to global economic growth?

    <p>A lifting of all boats through equitable growth.</p> Signup and view all the answers

    Study Notes

    Poverty

    • Poverty is a social phenomenon based on relative position within a society.
    • Relative poverty defines the poor as those with less than the median household income in their country.
    • Relative poverty links poverty and inequality, suggesting poverty reduction requires wealth redistribution and equality promotion.
    • Absolute poverty is objectively defined as a lack of basic necessities like food, water, shelter, and clothing.

    Development

    • Development as growth focuses on economic prosperity driven by the free market.
    • Liberalism sees development failures as stemming from internal factors like cultural norms, rigid state institutions, corruption, and ethnic conflicts.
    • Green politics emphasizes development as sustainability, balancing economic growth with environmental protection.
    • Cosmopolitan theorists advocate for development based on global justice.
    • Feminist perspectives argue that gender equality is crucial for development.

    Inequality

    • Economic liberals argue that inequality drives economic growth by incentivizing hard work and enterprise.
    • Inequality may be a necessary phase in industrial development.
    • The focus on wealth distribution should be on how it's achieved, rather than the outcome itself.
    • Freedom of individuals and states is prioritized over social leveling.

    Development Aid

    • Structural Adjustment Programs (SAPs) imposed by the IMF and World Bank aimed to promote privatization, reduce government spending, and devalue currencies.
    • SAPs often resulted in economic instability and heightened poverty.
    • SAPs are criticized for focusing on donor interests over recipient needs and for being based on flawed development models.
    • SAPs prioritize free trade over protecting industries during early industrialization.
    • SAPs are criticized for relying on free-market development as a precondition, rather than a consequence.

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    Description

    Test your knowledge on the various concepts of poverty, development, and inequality. This quiz covers relative and absolute poverty, different development theories including liberalism and green politics, and the role of gender in development. Explore how these ideas interconnect and shape our society.

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