The distribution of poverty is determined by changing demographic patterns and discrimination

Hotelling's rule states that

a. The net price of a resource is constant b. The net price of a resource rises at a rate equal to the interest rate c. The net price of a resource declines at a rate equal to the interest rate d. The price of a resource depends on the allocation of property rights e. The price of a resource is efficient as long as all user costs are internalized

Richard receives government transfer payments and currently consumes five guns and six goose livers. Assume the price of guns decreases by 10% and the price of goose liver increases by 20%

The government raises Richard's transfer payments so he can still afford five guns and six goose livers. Does this constitute a true cost-of-living adjustment? A) No. Richard is overcompensated. B) No. Richard is undercompensated. C) Yes. The payment just achieves the right level of compensation. D) Not enough information.