When Deciding Whether to Classify a Family as in Poverty

question 12

Multiple Choice

When deciding whether to classify a family as in poverty, official figures

• A) count all transfer and welfare benefits received by the family as income.
• B) do not count in-kind benefits in the calculation of the family's income.
• C) do not count cash benefits in the calculation of the family's income.
• D) do not count any transfer or welfare benefits as income.

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Definitions:

Lemonade

A beverage made from lemon juice, water, and sweeteners, often homemade and sold during warm weather for refreshment.

Budget Constraint

The limitations on the household's or entity's ability to purchase goods and services, based on their income and prices.

Good X

A placeholder term often used in economics to represent a generic good or product in theoretical models.

Good Y

An alternative characterization of a product or commodity that satisfies consumer needs or desires, often used in comparative analyses.