If the USGovernment Determines That the Cost of Feeding an Urban Family

question 84

Multiple Choice

If the U.S.government determines that the cost of feeding an urban family of six is $6,000 per year,then the official poverty line for a family of that type is

• A) $6,000.
• B) $12,000.
• C) $18,000.
• D) $36,000.

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, which can lead to beneficial trade.

Specialize

The process by which individuals, firms, or countries concentrate their efforts on producing a limited variety of goods or services to gain efficiency and improve performance.

Domestic Surplus

The excess of a country's production over its domestic consumption, often leading to exports.

Domestic Shortage

A Domestic Shortage occurs when the quantity demanded of a good or service in a country exceeds the quantity supplied at the current market price, leading to scarcity.