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2 Measuring Poverty Online Quiz Questions

Use this free practice quiz with 20 questions to review 2 Measuring Poverty, test your knowledge, and prepare for your next test or exam.

20 questions
01
True or false
1 point

True or false: Depending on how it is defined, a household income measure may include both pension payments and public benefits.

  1. A

    True

  2. B

    False

02
Choose one
1 point

Which description best defines a relative poverty line?

  1. A

    A cutoff tied to a defined minimum standard of basic needs

  2. B

    A cutoff defined in relation to the income distribution of a society

  3. C

    A cutoff based only on whether a household receives public benefits

03
Written response
1 point

What measure summarizes how far below the poverty line people fall?

04
Fill in the blank
1 point

The share of people below a poverty line is called the .

05
Choose one
1 point

A researcher studying living standards in a setting where many people have irregular earnings is considering consumption instead of income. Which is a potential reason to use consumption?

  1. A

    It records each household member's control over resources directly.

  2. B

    It avoids the need to decide which goods or services to include.

  3. C

    It can reflect living standards over time and may be easier to measure than irregular earnings.

  4. D

    It captures every aspect of hardship without survey work.

06
Choose all
1 point

Select all limitations of using only a poverty rate to describe hardship.

  1. A

    It does not show how far below the line people fall.

  2. B

    It cannot report the share of people below a line.

  3. C

    By itself, it does not show how long hardship lasts.

  4. D

    It always reveals how resources are distributed within households.

07
Choose one
1 point

Researchers choose a welfare measure and decide what counts as enough before classifying people as poor. What is a key consequence of these choices?

  1. A

    They shape who is counted as poor and which patterns the statistics reveal.

  2. B

    They guarantee that poverty estimates are comparable across places and years.

  3. C

    They ensure that every important hardship is measured by income alone.

08
True or false
1 point

True or false: Using an equivalence scale to adjust household resources for size and composition eliminates the need for assumptions about household needs.

  1. A

    True

  2. B

    False

09
Written response
1 point

A relative poverty line is set at half the national median income. If the relevant adjusted median income is $30,000, what is the poverty line in dollars?

10
Fill in the blank
1 point

Measures that record whether people lack goods, services, or social participation considered necessary for an adequate life are called .

11
Choose all
1 point

Select all factors that can affect how poverty statistics are interpreted or compared.

  1. A

    Whether researchers use the exact same welfare measure in every study

  2. B

    Which welfare measure and poverty line researchers choose

  3. C

    Whether a poverty line has the same name in different places

  4. D

    Survey methods and timing when comparing places or years

  5. E

    Whether the poverty rate is expressed as a share

12
Open ended
1 point

A household is above an income-based poverty line but lacks adequate housing and access to health care. Explain why an income measure and deprivation indicators may describe its circumstances differently, and give one limitation of a combined multidimensional score.

13
Choose one
1 point

Which statement correctly distinguishes the U.S. Census Bureau's official poverty measure from the Supplemental Poverty Measure?

  1. A

    The official measure adjusts its thresholds for housing costs by geography, while the Supplemental Poverty Measure does not.

  2. B

    Both measures use the same resource definition and geographic threshold adjustments.

  3. C

    The official measure's thresholds do not vary geographically, while the Supplemental Poverty Measure adjusts thresholds for housing costs by geography.

  4. D

    The official measure counts noncash benefits and tax credits, while the Supplemental Poverty Measure excludes them.

14
Choose one
1 point

Two places have the same poverty rate, but one has a larger poverty gap. What does this difference indicate?

  1. A

    Their poverty rates must have been calculated incorrectly.

  2. B

    People below the line may, on average, be farther below it in one place than in the other.

  3. C

    The places must have different proportions of people below the line.

  4. D

    One place must have used deprivation indicators instead of a poverty line.

15
Choose one
1 point

Which measure can reflect living standards over time and may be easier to measure than irregular earnings, while still requiring careful survey work?

  1. A

    Income, because irregular earnings are always easier to measure accurately than spending.

  2. B

    Consumption, because it can reflect living standards over time and may be easier to measure than irregular earnings.

  3. C

    A poverty rate, because it records the value of goods a household uses.

  4. D

    A relative poverty line, because it measures household spending directly.

16
Choose one
1 point

Two places have the same share of people below their respective poverty lines. Which conclusion is warranted about their poverty gaps?

  1. A

    They must have identical hardship because their shares below the line match.

  2. B

    One must have a higher poverty rate once differences in shortfall are considered.

  3. C

    They can have different poverty gaps because the rates do not reveal how far below the line people fall.

  4. D

    The poverty gap measures only the number of people above the line.

17
Choose one
1 point

An analyst wants a U.S. poverty estimate that uses a broader resource definition and accounts for geographic differences in housing costs. Which measure fits that purpose?

  1. A

    The official measure adjusts thresholds for housing costs by geography, while the Supplemental Poverty Measure does not.

  2. B

    The Supplemental Poverty Measure uses a broader resource definition and adjusts thresholds for housing costs by geography.

  3. C

    The official measure includes noncash benefits and tax credits, while the Supplemental Poverty Measure excludes them.

  4. D

    Both measures use the same resource definition and geographic thresholds.

18
True or false
1 point

A household consumption measure may include the value of goods the household produces for its own use.

  1. A

    True

  2. B

    False

19
Written response
1 point

What is another name for the poverty rate?

20
Written response
1 point

What term describes the choices researchers make about what counts as well-being and how much is enough when measuring poverty?