Which of the following statements is FALSE regarding the definition of poverty?
A. Real incomes in the United States have been growing at a compounded annual rate of almost 2 percent per capita.
B. A threshold income level is used to define poverty.
C. Poverty cannot be defined in relative terms.
D. Adjustments to the poverty level are made on the basis of changes in the Consumer Price Index.
Answer: C
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The short-run average total cost, average variable cost, and marginal cost curves are all U-shaped because of
i. constant total fixed cost. ii. increasing and then decreasing marginal returns as more labor is hired. iii. economies and diseconomies of scale as the plant size increases. A) only i B) only ii C) i and iii D) ii and iii E) i, ii, and iii
Which is a good example of an increase in total factor productivity?
A) a tax cut B) good weather C) a company reducing its workforce D) better credit conditions
Suppose that last year $1 U.S. exchanged for 1.2 euros. If this year $1 exchanges for 1.3 euros, then we can conclude that
A) the dollar is weaker this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the left. B) the dollar is weaker this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) to shift to the right. C) the dollar is stronger this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the left. D) the dollar is stronger this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the right.
An economic model:
A. should include all possible details. B. always accurately predict cause and effect. C. should make clear assumptions. D. will never use simplifying assumptions.