How is the dividing line between poverty and nonpoverty measured? Does this method overstate the degree of poverty?
What will be an ideal response?
Originally, the poverty line was established at $3,000 for family income in 1964. The line has since been modified to account for differences in family size and location (urban or rural) and is adjusted annually to reflect changes in the cost of living. This method emphasizes cash income as the measure of income and may overstate the actual degree of poverty. Some critics have suggested that a better measure of income should include in-kind income, such as public education, public housing, subsidized health care, and food. If these were included (measured), poverty would certainly be less but probably not entirely eliminated.
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An increase in the price of grape juice causes an increase in the marginal revenue product of labor used to produce grape juice
Indicate whether the statement is true or false
The distinctive characteristic of an oligopolistic market structure is that there are recognizable interdependencies among the decisions of the firms
a. true b. false
Which statement is true?
A. The Keynesians and the monetarists are proponents of the crowding-out effect. B. The Keynesians and the monetarists are proponents of the crowding-in effect. C. The Keynesians are proponents of the crowding-out effect and the monetarists are proponents of the crowding-in effect. D. The Keynesians are proponents of the crowding-in effect and the monetarists are proponents of the crowding-out effect.
Which would be considered a macroeconomic study? A study of the effect of:
A. a new tax on the profits of a business. B. changing government spending to increase employment. C. lower interest rates on a firm's investment. D. a decrease in the price of automobiles on automobile sales.