Microeconomics: Principles for a Changing World Chapter 15-Chiang This is a 4-pa

Question

Microeconomics: Principles for a Changing World Chapter 15-Chiang This is a 4-part Multiply Choice Question. Please if you do not intend to answer all parts please do not answer it. Thank you.

Part A. Households with a ratio of income to poverty of 0.8 are considered:

near poor.

severely poor.

not poor.

poor.

Part B. Households with a ratio of household income to poverty of 2.0 are considered:

poor.

not poor.

severely poor.

near poor.

Part C. If the poverty threshold is approximately $16,000 for a household of three, what would the Census Bureau consider the poverty status of a household of three that earns $12,000?

poor

severely poor

semi-poor

near poor

Part D. By including food stamps and housing subsidies and adjusting for household composition, the Census Bureau has:

found that poverty estimates remained the same.

eliminated poverty.

reduced the estimate of the poverty rate by 25%.

increased the estimate of the poverty rate by 39%.

Part A. Households with a ratio of income to poverty of 0.8 are considered:

near poor.

severely poor.

not poor.

poor.

Explanation / Answer

Part A. Poor because income to poverty ratio below 1 indicates that households are living below poverty line.

Part B. Not poor because income to poverty ratio above 1 indicates that households are living above poverty line.

Part C. Poor ( because near poor implies for just above poverty line).

Part D. Reduced the estimate of the poverty rate by 25%.

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