Economists Caution That Conventional Statistics Used to Estimate the Extent

question 99

Multiple Choice

Economists caution that conventional statistics used to estimate the extent of poverty in the United States fail to account for benefits people receive that, if considered, would reduce the amount of poverty.Which of the following is an example of these benefits?

• A)Individuals can use tax credits and the personal exemption to reduce their taxable incomes. This reduces what they owe the government and increases their disposable incomes.
• B)The federal income tax system is progressive. As a result, the poor have higher after-tax incomes than they would have if the income tax system was proportional or regressive.
• C)Individuals with low incomes receive non-cash benefits such as free school lunches and food stamps.
• D)The federal minimum wage forces employers to pay workers with low skills an efficiency wage.

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Definitions:

Tolerate

To allow the existence, presence, or practice of something that one does not necessarily like or agree with, without interference.

Self-Expression

The act of conveying one’s thoughts, feelings, or ideas through various forms such as speech, writing, or art.

Avoider

Someone who would rather not be around conflict at all and values neutrality highly.

Win-Lose Approach

A competitive strategy or mindset where success is achieved at the expense of others, focusing on one's own gain without regard for collective outcomes.