The Most Commonly Used Approach to Define the Poverty Line

question 62

Multiple Choice

The most commonly used approach to define the poverty line in Australia is to follow the definition of the Henderson Commission, conducted in 1975. This sets the poverty line at:

• A) 75.5 per cent of average weekly earnings
• B) 56.5 per cent of average weekly earnings
• C) 50 per cent of average weekly earnings
• D) 25 per cent of average weekly earnings

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Definitions:

Central Direction

The control of economic or organizational activity by a central authority or government.

Past Income

The amount of money earned in preceding periods, often used to assess financial stability or creditworthiness.

Inheritance

Assets received from someone who has died, transferring wealth or obligations from the deceased to their legal heirs or beneficiaries.

Federal Governments

A system of government where power is divided between a national (federal) government and various regional governments.