Which of the following explains why the U.S. poverty threshold increased from $3,000 per year in 1963 to $25,000 per year in 2017?
A. The government has become more benevolent than it was in 1963.
B. Inflation has caused the price for basic necessities to increase since 1963.
C. Americans are more spoiled now than they were in 1963.
D. The threshold includes more luxury items now than it did in 1963.
Answer: B
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A recession is a decline in
A. the inflation rate that lasts six months or longer. B. real GDP that lasts six months or longer. C. the unemployment rate that lasts six months or longer. D. potential GDP that lasts six months or longer.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
Employing an additional 1 billion hours of labor increases real GDP by $12 billion. Employing another 1 billion hours beyond the first 1 billion increases real GDP by $11 billion
Hence we can conclude from this information that as employment increases, real GDP A) increases at an increasing rate. B) decreases at an increasing rate. C) decreases at a decreasing rate. D) increases at a decreasing rate. E) falls from $12 billion to $11 billion as more workers are hired.
Which of the following is NOT a method for promoting global economic growth?
A) reliance on private markets to direct capital goods toward their best use B) Count on the world's governments to develop policies that promote economic growth in developing nations. C) Encourage population growth so that developing nations' labor supply increases. D) market based approach