Table 20-5 Distribution of Income in Umakastan

question 160

Multiple Choice

Table 20-5
Distribution of Income in Umakastan
-Refer to Table 20-5. If the poverty rate in Umakastan is 10%, what is the poverty line?

• A)$18,750
• B)$20,000
• C)$34,690
• D)$38,000

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Definitions:

Inventories

Raw materials, work-in-progress goods, and completely finished products that companies hold to facilitate business operations.

Intermediate Goods

Products that are used as inputs in the production of other goods or services rather than being bought by consumers.

Final Output

The total value of all goods and services produced and sold for final use in the economy, avoiding duplication by excluding intermediate goods.

Durable Goods

Items with a long life span, such as appliances and automobiles, that are used over time rather than consumed quickly.