Question 1

Describe middle-income economies.

Accepted Answer

About one-third of the world's population resides in nations with middle-income economies.The World Bank divides middle-income economies into lower-middle-income ($996 to $3,945)and upper-middle-income ($3,946 - $12,195).According to the World Bank,some nations have been more successful than others in implementing key elements of change and bringing about a higher standard of living for their citizens.Among other factors,high rates of inflation,the growing gap between the rich and the poor,low life-expectancy rates,and homeless children have been visible signs of problems in the transition toward a free market economy in countries such as the United States.As compared with lower-middle-income economies,nations having upper-middle-income economies typically have a somewhat higher standard of living and export diverse goods and services,ranging from manufactured goods to raw materials and fuels.As middle-income nations have been required to make payments on their debts,the requisite structural adjustments have necessitated that the countries make spending cuts in areas that formerly helped some of the poor,including subsidized food,education,and health care.

Question 2

Low-income economies are primarily found in countries in __________,where half of the world's population resides.

Accepted Answer

A)   Eastern Europe and Africa
B)   Asia and Africa
C)   Asia and South America
D)   South America and Africa B

Question 3

According to the World Health Organization,infectious diseases are far
from under control in many nations due to such factors as unsanitary or
overcrowded living conditions.

Accepted Answer

A) True 
 B)False  True

Question 4

By 2005,the wealthiest 20 percent of the world population had almost __________ times the income of the poorest 20 percent.

Accepted Answer

A)   50
B)   60
C)   70
D)   85

Question 5

The statement "The problem of inequality lies not in poverty,but in excess" is best summarized by which of the following?

Accepted Answer

A)   The solution to inequality is a change in the value system of the rich and not the poor.
B)   The solution to inequality is a change in the value system of the poor.
C)   The problem lies in the cycle of poverty.
D)   The primary problem lies in the inequality of the richest nations.

Question 6

Based on the new international division of labor theory,__________ chains is the term used to describe industries in which transnational corporations play a central part in controlling the production process.

Accepted Answer

A)   producer-driven commodity
B)   buyer-driven commodity
C)   individually-driven commodity
D)   transnational-driven commodity

Question 7

Describe low-income economies and the globalization of poverty.

Accepted Answer

The answer of Describe low-income economies and the globalization of...

Question 8

According to the United Nations,__________ is the process of "expanding choices that people have in life,to lead a life to its full potential and in dignity,through expanding capabilities and through people taking action themselves to improve their lives."

Accepted Answer

A)   life expectancy
B)   life span
C)   human development
D)   global development

Question 9

Women in the poorest nations have a literacy rate of _________ percent,as compared to 64.5 percent for men.Literacy is crucial for women because it has been closely linked to decreases in fertility,improved child health,and increased earnings potential.

Accepted Answer

A)   55.8
B)   67
C)   45.9
D)   90

Question 10

According to social scientists,absolute poverty exists when people may be able to afford basic necessities but are still unable to maintain an average standard of living; it is measured by comparing the actual income against the income earner's expectations and perceptions.

Accepted Answer

A) True 
 B)False

Question 11

There has been progress in youth literacy rates with _________ percent literacy in 63 of the 104 countries with available data.

Accepted Answer

A)   50
B)   95
C)   80
D)   65

Question 12

According to the new international division of labor theory,"__________" is the term used to refer to industries in which large retailers,brand-name merchandisers,and trading companies set up decentralized production networks in various middle- and low-income countries.

Accepted Answer

A)   transnational-driven commodity chains
B)   buyer-driven commodity chains
C)   individually-driven commodity chains
D)   producer-driven commodity chains

Question 13

__________ is based on a market-oriented perspective that assumes
That "pure" capitalism is good and that the best economic outcomes occur
When governments follow the policy of laissez-faire (hands-off) business,
Giving capitalists the opportunity to make the "best" economic decisions.

Accepted Answer

A)   World systems theory
B)   Dependency theory
C)   Modernization theory
D)   New international division of labor theory

Question 14

One of the primary problems encountered by social scientists studying
__________ and social and economic inequality is with determining what terminologyshould be used to refer to the distribution of resources in various nations.

Accepted Answer

A)   cosmic stratification
B)   universal stratification
C)   in-group stratification
D)   global stratification

Question 15

The decrease in life expectancy in the former Soviet Union is concentrated among men,perhaps linked to excessive alcohol consumption and stress brought about by:

Accepted Answer

A)   high rates of unemployment, inflation, and financial insecurity
B)   HIV epidemic
C)   hunger
D)   subjective poverty

Question 16

Nations with industrializing economies,particularly in urban areas,and with moderate levels of national and personal income,are referred to as:

Accepted Answer

A)   relative-income countries
B)   farming countries
C)   middle-income countries
D)   negligent countries

Question 17

A condition in which people do not have the means to secure the most basic necessities of life is defined as:

Accepted Answer

A)   standard poverty
B)   absolute poverty
C)   relative poverty
D)   subjective poverty

Question 18

Buyer-driven commodity chains is the term used to describe industries in which transnational corporations play a central part in controlling the production process.Industries that produce automobiles,computers,and other capital- and technology-intensive products are examples.

Accepted Answer

A) True 
 B)False

Question 19

The term ________ refers to all of the goods and services produced in a country within a given year,plus the net income earned outside the country by individuals and corporations.

Accepted Answer

A)   gross deductible income (GDI) 
B)   gross exemption income (GEI) 
C)   gross national income (GNI) 
D)   gross economic income (GEI)

Question 20

___________ is the movement of jobs and economic resources from one nation to another.

Accepted Answer

A)   Deindustrialization
B)   Economic mobility
C)   Capital flight
D)   Capital movement

Exam 9: Global Stratification