Which of the Following Reasons Suggests That Income-Based Measures of Poverty

question 75

Multiple Choice

Which of the following reasons suggests that income-based measures of poverty are not ideal when considering the poverty rates of young people:

• A)the economic life cycle of an adult suggests that you will supplement your income when young with borrowing
• B)young people tend to have lower standards and expectations than older people and retirees
• C)young people are not as geographically mobile as older people and therefore then to be stuck in low paying jobs
• D)the incomes of young people is more volatile than average and therefore any one year is not a good measure of income

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Definitions:

Variable Manufacturing Costs

Expenses that fluctuate with production output levels, including raw materials, direct labor, and utility costs directly involved in the manufacturing process.

Predetermined Fixed Overhead

A budgeted or estimated amount of fixed overhead costs, used to allocate overhead costs to products or services.

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product, excluding fixed overhead costs.

Absorption Costing

Absorption Costing is a method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.