When Exploring If the Poverty Line Should Be Based on Net

question 8

Multiple Choice

When exploring if the poverty line should be based on net disposable income,

• A)the growth of the working poor creates two major inaccuracies in the povery measure.
• B)even after taxes,the income is further reduced by work-related expenses,primarily child care.
• C)both liberals and conservatives agree that something should be done to to base the poverty line on actual disposable income rather than gross income.
• D)All of the above

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Definitions:

Microchips

Small semiconductor devices containing electrical circuits that can perform calculations or store data.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

International Trade

The exchange of goods, services, and capital across international borders, driven by comparative advantages and benefiting parties through increased choice and efficiency.

Autarky Price

The price of a good in a country under the condition of autarky, where the country does not engage in international trade.