Why Is Measuring Poverty Using an Absolute Income Scale (Like

question 12

Multiple Choice

Why is measuring poverty using an absolute income scale (like the poverty line) likely to be deceptive

• A)Income measures don't 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 labour market.
• D)Income is not correlated with job satisfaction.

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Definitions:

Short-run Average Cost

The total cost divided by the quantity of output produced, in the short term when at least one input is fixed.

Long-run Average Cost

The per-unit cost of production in the long term, where all inputs can be varied and economies of scale can be achieved.

Substitution

Substitution refers to the economic principle where users replace one good or service with another in response to changes in price, technology, or consumer preferences.

Product Transformation Curve

Curve showing the various combinations of two different outputs (products) that can be produced with a given set of inputs.