The Threshold Income Level Originally Used to Determine Official Poverty

question 47

Multiple Choice

The threshold income level originally used to determine official poverty statistics was based on

• A) an income three times the amount of money needed to purchase a nutritionally adequate diet.
• B) standards provided by the United Nations based on studies done in poor countries around the world.
• C) the highest income of the lowest one-fifth of families in the country.
• D) a per capita income of $1,000 in 1958 prices.

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of investor's wealth maximization.

Spinoff

A spinoff occurs when a company creates an independent entity by detaching a portion of its business, assets, or division, distributing shares of the new entity to its current shareholders.

Divest

The act of selling off assets or divisions of a company for financial or strategic reasons.

Failing Business

A business that is unable to continue operating due to financial difficulties, leading to bankruptcy or liquidation.