Question

1. The intensified globalization during the last 40 years has not been associated with widening inequality, but has instead brought a moderate reduction of global income inequality because, as shown by empirical studies,
   1. the ratio of richest to poorest countries has fallen over time.
   2. the ratio of richest to poorest countries has not changed.
   3. the Gini Coefficient has declined after the 1970s.
   4. the Gini Coefficient has risen after the 1970s.

2. Although the term sweatshop has no unique definition, most definitions are a variation of the one advanced by Sweatshop Watch, that includes
   1. extreme exploitation
   2. absence of a living wage or benefits
   3. poor working conditions
   4. All of the above

3. Which of the following activities are associated with the anti-sweatshop movement under core labor standards?
   1. Rights to association/collective bargaining
   2. End of discrimination in employment
   3. Implementation of minimum age for employment
   4. All of the above

4. At which of the following stages of economic development of a country do the positive scale effects and structural effects outweigh the negative effects on environment?
   1. Low-income status
   2. Middle-income status
   3. High-income status
   4. All of the above.

Answer 1

Q1) The answer is (c) the Gini Coefficient has fallen after the 1970s.

During the period after the 1970s, between-country inequality has fallen by approx 15 Gini points.

(b) and (d) are false as they show the same inequality

(a) is false as the ratio of richest to poorest countries has risen over time

Q2) The answer is (d) all of the above

A sweatshop is characterized by all the factors mentioned in (a), (b) and (c) respectively with extremely poor working conditions.