What Is the Poverty Rate

question 93

Multiple Choice

What is the poverty rate?

• A)the rate at which the number of people relative to the size of the population fall below the poverty line
• B)the percentage of the population earning an annual income below the poverty line, according to the federal government's definition
• C)the percentage of working adults whose annual income is sufficiently low as to be exempt from paying income taxes
• D)the percentage of households who qualify for government assistance to meet the minimal requirement for adequate nutrition

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Definitions:

Government Spending

The total amount of money that a government expends on services, goods, and public projects.

Marginal Benefit

The additional benefit received from the consumption of one more unit of a good or service.

Marginal Cost

The additional cost incurred in producing one more unit of a product or service.

Public Good

A good that is both non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use, and use by one does not reduce its availability to others.