The Poverty Line Is Described by Which of the Following

question 7

Multiple Choice

The poverty line is described by which of the following?

• A) It is a dollar figure. When a household income is equal to or less than this figure, the household is not considered to be poor.
• B) It is a dollar figure above which a household's income is considered to be in the poor category.
• C) In 2010 in the United States, the poverty line for a family of four was an income of $22,314.
• D) The poverty line is the same for all family sizes.

Understand the tools and components of fiscal policy.

Comprehend the difference and relationship between fiscal policy, government spending, and taxation.

Identify the effects of fiscal policy on aggregate demand and supply.

Distinguish between discretionary fiscal policy and automatic stabilizers.

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Definitions:

Marginal Product Curve

A graphical representation that shows how the addition of a unit of labor or capital affects the output of production.

Money Wage Rate

The money wage rate refers to the nominal amount of money that employees receive in exchange for their labor, typically reported as an hourly or yearly salary.

Substitution Effect

The change in the consumption pattern of goods due to a change in relative prices, holding the level of utility constant.

Output Effect

The change in total output resulting from a change in input quantities or the introduction of new processes or technologies in the production.