Measuring Poverty Using an Absolute Income Scale Like the Poverty

question 82

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 valued less highly by the poor than by the rich.
• C) the poor are not likely to participate in the labor market.
• D) income measures are adjusted for the effects of labor-market discrimination.

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Definitions:

IFRS

IFRS stands for International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) aiming at making global financial statements more comparable, transparent, and reliable.

Marketable Securities

Marketable securities are liquid financial instruments that can be quickly converted into cash at their current market prices.

Trading Securities

Financial assets that a firm holds for the purpose of selling them in the short term to profit from price changes.

Amortized Cost

The amount at which a financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization.