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

Apply mathematical reasoning to predict long-term behaviors in dynamic systems.

Understand the concept of Nash equilibrium and how it applies to various strategic games.

Distinguish between pure strategy and mixed strategy equilibria in games.

Identify dominant strategies and their impact on game outcomes.

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Definitions:

Spending

The expenditure of money on goods, services, or other items by individuals, businesses, or governments.

Classical Economics

A school of economic thought, originating in the 18th and 19th centuries, that focuses on free markets and the idea that markets, if left unregulated, will naturally adjust to equilibrium over time.

Keynes

A reference to John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Classical Economists

Economists, primarily from the 18th and 19th centuries, who believed in the importance of free markets, competition, and the self-regulating nature of economies.