Suppose That in a Certain Society $10,000 Is the Official

question 7

Essay

Suppose that in a certain society $10,000 is the official cut-off of income for the poor.This means that any person making less than $10,000 is considered poor.Suppose further that there are three people in this society: Randy,Marlon,and Tito,with incomes of $9,900,$9,900,and $5,000,respectively.
A)How many people are in poverty?
B)How much income would it take,on average,to lift every poor person out of poverty?
C)What if some policy caused $200 to be taken from Tito and given to Randy.How many people are in poverty now? How much income would it take,on average,to lift every poor person out of poverty?

• A)How many people are in poverty?
• B)How much income would it take,on average,to lift every poor person out of poverty?
• C)What if some policy caused $200 to be taken from Tito and given to Randy.How many people are in poverty now? How much income would it take,on average,to lift every poor person out of poverty?

---

Definitions:

Trade Receivables

Amounts owed to a business by its customers arising from the sale of goods or services on credit.

Other Receivables

Financial claims against other entities besides accounts receivable, such as interest receivable, income taxes refundable, or insurance claims receivable.

Nontrade Receivables

Monies owed to a company that are not related to the sale of goods or services, such as loans to employees.

Loans

Loans refer to borrowed money that must be repaid with interest by the borrower to the lender, used typically for personal, business, or education purposes.