When Poverty Is Defined by an Relative Real Income Level

question 53

Multiple Choice

When poverty is defined by an relative real income level, what will happen to the poverty rate if the distribution of income is not perfectly equal?

• A) The poverty rate will increase forever.
• B) The poverty rate will eventually be zero.
• C) The poverty rate will always remain constant.
• D) The poverty rate will change, but always exist.

---

Definitions:

Renewable

Renewable resources are natural resources that can replenish themselves over time and do not diminish, such as solar, wind, and hydroelectric power.

Remote Locations

Areas that are far away from populated centers or difficult to access.

Gold-bearing Conglomerate

A sedimentary rock consisting of rounded pebbles and mineral fragments, among which gold particles are present.

Caldera

A large, cauldron-like depression that forms following the eruption and collapse of a magma chamber beneath a volcano.