Measuring Poverty Using an Absolute Income Scale Like the Poverty

question 123

Multiple Choice

Measuring poverty using an absolute income scale like the poverty line can be misleading because

• A) income measures do not include the value of in-kind transfers.
• B) money is more highly valued by the poor than by the rich.
• C) the poor are not likely to participate in the labor market.
• D) income measures are not adjusted for the effects of labor-market discrimination.

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Definitions:

Negative Feedback

A regulatory mechanism in which a stimulus causes an opposite output in order to maintain an ideal level of whatever is being regulated.

Effector

A muscle, gland, or organ that responds to a stimulus from the nervous system by producing a specific effect or action.

Receptor

Structural protein or glycoprotein molecule on the cell surface or within the cytoplasm that binds to a specific factor (chemical signal).

Midline

An imaginary line that divides the body into equal left and right halves.