How Is the Poverty Line Calculated

question 46

Multiple Choice

How is the poverty line calculated?

• A) two-thirds of the minimum wage for a full-time worker.
• B) the cost of a minimaly nutritional diet times three
• C) one-third of the U.S. median income
• D) the previous year's poverty rate adjusted for inflation and change in the cost-of-living

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Definitions:

Ownership Interest

A legal right or stake in property, indicating the owner's claim to control and benefit from it.

Articles of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.

Capital Surplus

Excess amount received by a company over the par value of its stock, representing additional paid-in capital.

Earned Surplus

The portion of a company's net income that is retained for reinvestment, rather than being distributed as dividends to shareholders.