Measuring Inclusiveness
In what way is poverty likely to have a negative effect on growth?
a. It reduces tax revenue and thus the ability of the government to invest in infrastructure and education
b. It lowers aggregate demand and reduces profitability of businesses
c. It reduces the ability to accumulate physical and human capital and adopt technology
d. All of the above
All of the above
Why are most taxes considered to be distortive and reduce the amount of commercial activity in a market?
a. They constitute a transfer from producers and/or consumers to the government
b. They inevitably impose a loss on the private sector (the buyer pays more, and the seller receives less)
c. They benefit government and producers more than consumers
d. They increase income inequality
b
Okun’s Law prescribes that:
a. The percent of the population that decides to enter the labor force will increase with average income
b. There is a negative relation between the unemployment gap and the output gap
c. The change in unemployment decreases with the job vacancy rate
d. The reservation wage decreases with age
b. There is a negative relation between the unemployment gap and the output gap
According to calculations and projections by the International Panel on Climate Change (IPCC), which of the following statements is true, regarding past average global warming between 1900 and 2012, and future global warming up until 2100 under a “business as usual” scenario in which no mitigation actions are taken?
a. Past average warming of over 1º C, future warming of 1º C
b. Past average warming of over 1º C, future warming of 4 - 6º C
c. Past average warming of 2º C, future warming of 2º C
d. Past average warming of over 1º C, future warming of 3º C
b. Past average warming of over 1º C, future warming of 4 - 6º C
What does a growth incidence curve depict?
a. How different economic sectors contributed to economic growth
b. Which segments of the population benefited from growth
c. How inequality has affected growth
d. How large is the poverty gap
b. Which segments of the population benefited from growth
How many shops in Avenues mall
a. 500
b. 700
c. 1000
d.1100
e. more than 1100
e
Throughout the world, which types of persons (adults) are more likely to be financially included, or banked?
a. The unemployed
b. The young
c. Those from larger households
d. The more educated
d.The more educated
Which of the following policies is most likely to lead to a decline in corruption?
a. Public salaries are increased while the probability of punishment for corruption is non-trivial
b. Procurement and administration are decentralized to lower tiers of government
c. Government officials are required to go through a corruption-related hearing by a specially created commission
d. An anti-corruption bureau is created
a. Public salaries are increased while the probability of punishment for corruption is non-trivial
What is the main advantage of using the poverty gap instead of the poverty headcount ratio as a measure of poverty?
a. The poverty gap provides a more accurate count of the poor
b. The poverty gap is sensitive to the depth of poverty
c. The poverty gap better accounts for inequality among the poor
d. The poverty gap is a better indicator of the direction of pro-poor policy
b. The poverty gap is sensitive to the depth of poverty
Everything else being equal, when is a tax likely to becomes LESS distortive?
a. The larger the tax rate
b. The less elastic is its revenue with respect to output
c. The more tax exemptions there are
d. The more elastic is its revenue with respect to output
b
How can the government most effectively help to improve access to finance for small and medium enterprises (SMEs)?
a. By encouraging the development of lending technologies suitable for SMEs
b. By providing interest rate subsidies to SMEs
c. By providing government guarantees for SME lending
d. By encouraging the development of smaller banks and microfinance institutions
a. By encouraging the development of lending technologies suitable for SMEs
Which of the following variables matters most empirically for explaining economic growth?
a. School attainment
b. The enrollment rate in primary education
c. The enrollment rate in secondary and tertiary education
d. The learning outcomes and skills of the population
d. The learning outcomes and skills of the population
How are income and wealth inequality likely to hurt economic growth?
a. Households with high income tend to save less, and hence there is less investment
b. Excessive inequality could erode social cohesion and lead to political polarization and ultimately lower economic growth.
c. Inequality implies that society is non-meritocratic, and therefore enterprises are not managed by the most capable people
d. Inequality means that fiscal policy is too redistributive and inefficient
b. Excessive inequality could erode social cohesion and lead to political polarization and ultimately lower economic growth.
Which of the following policies is NOT an example of pre-distribution?
A. Implementing a minimum wage
B. Strengthening labor unions
C. Providing progressive income tax credits
D. Improving access to education
C. Providing progressive income tax credits
According to the lecture, what is the main difference between redistribution and pre-distribution policies?
A. Redistribution policies directly affect market wages before income is earned, while pre-distribution policies act after income is distributed.
B. Pre-distribution policies shape how the market distributes income, while redistribution policies adjust income after the market outcome.
C. Both redistribution and pre-distribution policies only operate through the tax system.
D. Redistribution policies are only relevant in developing economies, while pre-distribution policies are used in advanced economies.
B. Pre-distribution policies shape how the market distributes income, while redistribution policies adjust income after the market outcome.
Considering economic efficiency, ease of implementation, and price predictability, which of the following mitigation policies would be preferred?
a. Emission trading systems (ETS: allowances held for emissions, which are capped)
b. Regulations (for example, minimum mileage standards)
c. Carbon tax (e.g., charges on the carbon content of fossil fuels)
d. Feebates (fees/rebates on activities with above/below average emissions)
c. Carbon tax (e.g., charges on the carbon content of fossil fuels)