Economists Caution That Conventional Statistics Used to Estimate the Extent

question 132

Multiple Choice

Economists caution that conventional statistics used to estimate the extent of poverty in the United States fail to account for benefits people receive that, if considered, would reduce the amount of poverty.Which of the following is an example of these benefits?

• A)State and local sales taxes are regressive. As a result, the poor have lower after-tax incomes than they would have if these taxes were proportional or progressive.
• B)The federal income tax system is progressive. As a result, the poor have higher after-tax incomes than they would have if the income tax system was proportional or regressive.
• C)Individuals with low incomes receive non-cash benefits such as free school lunches and food stamps.
• D)The federal minimum wage forces employers to pay workers with low skills an efficiency wage.

---

Definitions:

Nonsense Syllables

Arbitrary sequences of letters that do not have meaning, often used in memory and learning experiments.

Memory Research

The study of how the brain acquires, stores, and retrieves information, focusing on understanding memory processes.

Anterograde Amnesia

A condition characterized by the inability to form new memories following the onset of an injury or disease, while memories from before remain intact.

Cramming

A study technique involving intense memorization and learning in a short period, usually right before an examination.