What Is One of the Problems with Using Official Poverty

question 52

Multiple Choice

What is one of the problems with using official poverty counts?

• A)The formula is based on food costs,which have declined relative to other expenses.
• B)They tend to underestimate the number of children who live in poverty.
• C)They tend to exaggerate the number of women who live in poverty.
• D)They tend to overestimate the amount of people in poverty.-

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Definitions:

Free-Rider Problem

A situation in public goods provision where individuals enjoy the benefits of goods or services without contributing to their costs, undermining the incentive for its provision.

Street Entertainers

Individuals or groups who perform various forms of entertainment in public spaces, often for voluntary donations.

Nonexcludability

Characterizes goods or services where it is not possible to prevent non-paying individuals from consuming the product, typical of public goods.

Public Goods

Economic goods that are non-excludable and non-rivalrous, meaning they can be simultaneously accessed by multiple people without diminishing availability to others.