Economists Say That Official Poverty Statistics Do Not Accurately Measure

question 22

Multiple Choice

Economists say that official poverty statistics do not accurately measure the true rate of poverty because the data fails to include

• A) income earned from investments.
• B) income earned by the elderly.
• C) income earned by teenagers.
• D) in-kind transfers.
• E) single-parent households.

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Definitions:

Revenue Recognition

Accounting principle determining the specific conditions under which revenue is recognized or recorded.

Production

The process by which raw materials are transformed into finished goods through the use of labor, machinery, and processes.

Customization

The process of modifying or building a product, service, or system according to individual or customer requirements.

Installment Sales Contracts

Contracts in which the buyer agrees to pay the purchase price of an asset in several periodic payments.