What Is One of the Problems with Using Official Poverty

question 52

Multiple Choice

What is one of the problems with using official poverty counts?

• A)The formula is based on food costs,which have declined relative to other expenses.
• B)They tend to underestimate the number of children who live in poverty.
• C)They tend to exaggerate the number of women who live in poverty.
• D)They tend to overestimate the amount of people in poverty.-

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or resource, usually to protect consumers.

Price Floor

A government or regulatory minimum price that must be paid for a good or service, intended to prevent prices from falling too low.

Shortage

A market condition where demand exceeds supply.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded, often resulting in excess stock and potential price reductions.