The Threshold Income Level Originally Used to Determine Official Poverty

question 47

Multiple Choice

The threshold income level originally used to determine official poverty statistics was based on

• A) an income three times the amount of money needed to purchase a nutritionally adequate diet.
• B) standards provided by the United Nations based on studies done in poor countries around the world.
• C) the highest income of the lowest one-fifth of families in the country.
• D) a per capita income of $1,000 in 1958 prices.

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Definitions:

Utility

A measure of satisfaction or happiness that consumers receive from consuming goods and services.

Prisoner's Dilemma

A fundamental problem in game theory demonstrating that two people might not cooperate even if it is in both their best interests to do so.

Nash Equilibrium

An idea in game theory where a player cannot benefit by altering their strategy alone while the strategies of other players stay the same.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if the other players keep theirs unchanged.