On What Basis Does Government Set the Poverty Threshold

question 28

Multiple Choice

On what basis does government set the poverty threshold?

• A)Persons with below-average income are considered poor by the official definition.
• B)Persons without sufficient incomes to purchase basic necessities are considered poor by the official definition.
• C)Anyone earning less than $8,000 a year is considered poor by the official definition.
• D)Anyone who claims to be poor on government surveys is considered poor by the official definition.
• E)Persons earning less than half the average income are considered poor by the official definition.

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Definitions:

Market Demand Curve

A graphical representation that shows the relationship between the price of a good or service and the total quantity demanded by all consumers in the market.

Willingness To Pay

The maximum amount an individual is prepared to sacrifice to procure a good or service or to avoid something undesirable.

Pollution Emissions

These are the release of pollutants into the environment, typically from industrial or other human activities.

Added Cost

An additional expense incurred due to a new decision or action, beyond the existing costs.