Which of the Following Statements Is Not Correct

question 101

Multiple Choice

Which of the following statements is not correct?

• A)The poverty line is an absolute level of income set by the federal government below which a family is considered to be in poverty.
• B)The poverty line is approximately equal to three times the cost of providing an adequate diet.
• C)The poverty line is adjusted annually to reflect changes in price levels.
• D)The poverty line is adjusted semiannually to reflect changes in fuel prices.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Selling Below Cost

The practice of offering goods or services for sale at a price that is less than the total cost to produce and sell them.

Merchandise Trade Deficits

A situation where a country's value of imports of physical goods exceeds the value of its exports.

Protection

In economics, referring to measures like tariffs and quotas that a country uses to shield its domestic industries from foreign competition.