The Official Poverty Threshold

question 54

Multiple Choice

The official poverty threshold:

• A) is determined by multiplying the cost of a nutritionally adequate diet by three.
• B) is determined by examining a household's money income and in-kind transfers.
• C) makes no allowances for changes in prices.
• D) is determined by comparing a household's income to median income.

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Definitions:

Specific Invoice Method

A method used in accounting to record the cost of goods sold based on the specific cost of individual items.

Large Quantities

Refers to the purchasing or production of goods in bulk amounts, often at a reduced cost per unit.

Low-Cost Goods

Products that are sold at relatively low prices compared to other similar products in the market.

Consignor

The one who consigns merchandise to the consignee.