Why Is It Important to Adjust the Poverty Threshold Every

question 48

Multiple Choice

Why is it important to adjust the poverty threshold every year?

• A) because of changes in the minimum wage
• B) because of changes in the level of in-kind transfers
• C) because of changes in taxes
• D) because of changing prices
• E) because of changes in family size

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Definitions:

Close Substitutes

Products or services that can easily replace one another in the eyes of consumers, leading to competitive market dynamics.

Positive Profits

Positive profits occur when a business's total revenues exceed its total costs, indicating financial gain from its operations.

Long Run

Refers to a period where all factors of production and costs can be variable, allowing firms to adjust to changes in the business environment fully.

Short Run

A period in which at least one factor of production is fixed, allowing limited adjustments to changes in production or the business environment.