Absolute poverty measures vary from country to country. For example, in 2015, the poverty line in the United States for a family of four with two children
was an annual income of $24,250 but economists often use a much lower threshold income of $1 per day when calculating the rate of poverty in poor countries. How is this absolute poverty measured?
A) by comparing the amount of goods and services that a household's income can purchase in one country to the amount of goods and services that a household's income can purchase in another country of comparable living standard
B) by comparing the amount of goods and services that a household's income can purchase to an objective measure of the amount of income needed to sustain a certain predetermined standard of living
C) by comparing the percentage of households living below the poverty line to the total population
D) by comparing a household's income to the income required to maintain the average standard of living in a society at a particular time
B
You might also like to view...
Everything else held constant, an increase in the time deposit ratio will result in ________ in the M1 money multiplier and ________ in the M2 money multiplier
A) an increase; an increase B) no change; an increase C) a decrease; a decrease D) no change; a decrease
If your income goes down by10% and, in response, the quantity demanded of good x falls by 20%, the income elasticity of demand would be:
a. 2 b. 4 c. .5 d. .20
Assume that a firm's marginal revenue curve intersects the rising portion of its marginal cost curve at 500 units of output. At this output level, a profit-maximizing firm's total cost of production is $1,000 . If the price of the product is $5 per unit, the total revenue earned by the firm will be:
a. $1,500. b. $250. c. $500. d. $2,500. e. $1,000.
The horizontal investment curve used to derive the TE curve implies that investment is
A) directly related to Real GDP. B) indirectly related to Real GDP. C) independent of Real GDP. D) sometimes directly and sometimes indirectly related to Real GDP, depending upon whether it is planned capital or planned inventory investment.