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. Inflation has caused the price for basic necessities to increase since 1963.
B. Americans are more spoiled now than they were in 1963.
C. The threshold includes more luxury items now than it did in 1963.
D. The government has become more benevolent than it was in 1963.
Answer: A
You might also like to view...
The wealth effect on consumer spending is
A) about the same as the effect on plant and equipment expenditure. B) about the same as the effect on residential construction. C) less than the effect on plant and equipment expenditure. D) larger than the effect on residential construction.
When the domestic currency depreciates, domestic goods become more expensive to foreign buyers
a. True b. False Indicate whether the statement is true or false
If the economy is in equilibrium at $600 billion national income and if MPC = 0.75 and intended investment is $25 billion, what happens to national income when intended investment increases to $30 billion? It will
a. increase to $605 billion b. decrease to $595 billion c. increase to $620 billion d. increase to $624 billion e. decrease to $580 billion
The use of tax penalties to control pollution represents a
a. price-based market approach to the pollution problem. b. non-market approach to the pollution problem. c. major source of current federal revenues. d. pollution-rights solution to the pollution problem.