Equity and Redistribution of Income and Wealth Quiz by Shubhrata Shrestha | Jun 30, 2025 | 0 comments Equity and Redistribution of Income and Wealth Quiz 1. What best describes equity in economics? A) Treating everyone equally B) Distributing resources based on individual needs C) Maximizing total production D) Ensuring same income for all None 2. Which of the following is an example of absolute poverty? A) Earning less than others in your country B) Not being able to afford branded goods C) Lacking access to food and clean water D) Not owning a car None 3. What is a key characteristic of the poverty trap? A) Unemployment benefits increase over time B) Individuals can’t access free education C) Earning more results in losing significant welfare benefits D) Taxes decrease with more income None 4. A policy where people below a certain income receive money from the government is called: A) Universal Basic Income B) Negative Income Tax C) Minimum Wage Law D) Consumption Tax None 5. Which statement about relative poverty is correct? A) It applies only to developing countries B) It’s based on access to absolute minimum needs C) It’s defined in comparison to the average income of society D) It’s the same in all countries None 6. Which of the following policies is not means-tested? A) Food stamps B) Universal pension C) Income-based housing benefit D) Unemployment allowance None 7. What is a disadvantage of universal benefits? A) Only poor people benefit B) High cost to the government C) They are difficult to administer D) Creates inequality None 8. Which best describes the equity-efficiency trade-off? A) Higher equity always increases economic growth B) There is no link between equity and efficiency C) Equity reduces poverty without affecting work incentives D) More equity may reduce incentives and output None 9. Universal Basic Income (UBI) differs from negative income tax because: A) It is given to everyone regardless of income B) It only benefits the unemployed C) It is based on a work requirement D) It is paid as a tax credit None 10. Which benefit is most likely to discourage working due to the poverty trap? A) Public health service B) Free school meals C) Means-tested housing support D) Tax allowance None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
