The official poverty level is based on
A) total net worth.
B) pretax income, and includes cash subsidies but does not include in-kind subsidies such as food stamps.
C) after-tax income, and includes both cash and in-kind government subsidies.
D) wages and salaries, plus any unreported amounts of income from the underground economy.
Answer: B
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The above table shows the distribution of wealth and income in Miseria. Ninety-five percent of the wealth is owned by what percent of the population?
A) 20 percent B) 40 percent C) 60 percent D) 95 percent
If, in response to a decrease in the price of grapes, the quantity of grapes demanded increases, economists would describe this as
A) a change in consumer income. B) an increase in quantity demanded. C) an increase in consumers' taste for grapes. D) an increase in demand.
The textbook cites an estimate of the "sacrifice ratio" in the United States of approximately
A) one-third. B) one-half. C) one. D) three. E) six.
When the economy is far below the natural rate of real output, efforts to change inflation with monetary policy will be ____ successful and efforts to stimulate the economy will be ____ successful
a. More; less b. More; more c. Less; less d. Less; more