How is the dividing line between poverty and nonpoverty measured? Does this method overstate the degree of poverty?
What will be an ideal response?
Originally, the poverty line was established at $3,000 for family income in 1964. The line has since been modified to account for differences in family size and location (urban or rural) and is adjusted annually to reflect changes in the cost of living. This method emphasizes cash income as the measure of income and may overstate the actual degree of poverty. Some critics have suggested that a better measure of income should include in-kind income, such as public education, public housing, subsidized health care, and food. If these were included (measured), poverty would certainly be less but probably not entirely eliminated.
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As long as an additional worker hired by a firm produces
A) more output than the real wage rate, the firm will hire that worker. B) more output than the real wage rate, the firm will not hire that worker. C) less output than the real wage rate, the firm will hire that worker. D) some output, the firm will hire that worker. E) more output than the nominal wage rate, the firm will hire that worker.
Which of the following statements applies to a purely competitive producer?
A. It will not advertise its product. B. In long-run equilibrium it will earn an economic profit. C. Its product will have a brand name. D. Its product is slightly different from those of its competitors.