Which of the Following Is an Assumption for the Calculation

question 192

Multiple Choice

Which of the following is an assumption for the calculation of the poverty level in the United States?

• A)The poor spend about half of their income on clothing.
• B)The rich spend about half of their income on clothing.
• C)The rich spend about one-third of their income on food.
• D)The poor spend about one-third of their income on food.
• E)The rich and the poor both spend an equal proportion of their income on food.

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Definitions:

United States

A country located in North America, known for its significant economic, cultural, and political influence globally.

Maximum Price

A price ceiling set by authority to limit how high a price can be charged for a product or service.

Equilibrium Price

The price point at which the supply of a good matches its demand in the market.

Economic Impact

The effect of an event, policy, or business activity on the economy of a specific area, ranging from local to global.