What are some measurement issues involved in accurately measuring poverty?
What will be an ideal response?
First of all, critics argue that the income measurements for the level of poverty are arbitrary and are an inadequate measure of poverty. Others also note that the cost of living in major cities is considerably higher than the official poverty levels. This means that poverty may be hidden in urban areas where households who earn above the poverty level are not able to meet food, housing and healthcare needs. Others argue on the opposite end, that using income as a means of measuring poverty overstates the number of poor. They note that when household consumption is used to measure poverty levels, the level of poverty is substantially diminished. They argue this occurs because homes are able to use savings, loans and the sale of assets to fund consumption and can receive income supplements such as Supplemental Nutrition Assistance Program (SNAP) benefits and rent subsidies.
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Tijuana, Mexico is across the border from San Diego, California
It has become a world-leading producer and exporter of television sets and computer monitors, which it assembles in modern factories owned by multinational consumer electronics firms such as Sony. Initially, these electronics were produced in the industrialized countries of their parent companies, and after several years, the production moved to Tiajuana. This is an example of A) the product cycle. B) intraindustry trade. C) the specific factors model. D) the magnification effect. E) None of the above.
Quantity discrimination makes sense if
A) buyers of smaller quantities are more price sensitive than buyers of larger quantities. B) buyers of smaller quantities are less price sensitive than buyers of larger quantities. C) demand for the good is perfectly elastic. D) the lower price for larger quantities encourages all consumers to purchase the larger quantity.
The ____ heuristic observes that when facts are at issue the correct answer is often the one people recognize, and the incorrect answer is the one they do not
a. representative b. availability c. recognition d. elimination
Most modern economic analysis is normative in nature, but involves questions with positive aspects.
Answer the following statement true (T) or false (F)