Official Data May Overstate the Extent of Poverty Because

question 104

Multiple Choice

Official data may overstate the extent of poverty because

• A)poverty is a relative concept as opposed to an absolute concept.
• B)it does not add "in-kind" transfers to the incomes of the poor.
• C)it overstates the taxes paid by the poor.
• D)it overestimates the amount the poor earn in the "underground economy."

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Definitions:

Profit-maximizing

The process or strategy of adjusting production and sale levels to achieve the highest possible profit.

Communications Network

A system of interconnected digital or analog devices and channels used for the purpose of exchanging information.

Willingness to Pay

The maximum amount an individual is ready to sacrifice to acquire a good or service or to avoid something undesirable.

Proportional

A relationship or ratio between two quantities where one is directly proportional to the other.