Which of the Following Is True of the Effects of Poverty

question 39

Multiple Choice

Which of the following is true of the effects of poverty on young people?

• A)The economic circumstances of teenagers earning money are independent of those faced by their parents.
• B)The poverty rate among children is lower today than it was four to five decades ago.
• C)The high rates of divorce and single parenthood have increased the risk of poverty among the young.
• D)The poverty rates among children are lower when compared to that of adults.

Examine the impact of taxes on consumer surplus and market efficiency.

Understand the concepts of neutral and nonneutral taxes and their implications on economic decisions.

Grasp the principle of second best and how it applies to taxation policies.

Recognize the influence of tax elasticity on tax distortion and excess burden.