Because of an Increase in the Work-Force Participation Rate for Women

question 27

Multiple Choice

Because of an increase in the work-force participation rate for women, the availability of uncompensated child care (free care by aunts, sisters, and grandmothers) has become less available to poor women so as a consequence the fact that child care must now be paid for suggests that the

• A)poverty is not a problem.
• B)poverty line should be revised downward.
• C)poverty gap is overstated.
• D)poverty rate is understated.

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Definitions:

Price of Good

The amount of money required to purchase a specific product or service.

Affordable Consumption Options

Economically accessible choices available to consumers for goods and services within their budget constraints.

Indifference Curves

A graph representing different bundles of goods between which a consumer is indifferent, showing preferences and trade-offs.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute a product with a cheaper alternative.