2. Understanding the U.S. poverty line The following table shows the U.S. poverty thresholds for 2021 by size of family and number of related children under the age of 18. All figures are in dollars. For example, a family with two adults and three children is considered to be living in poverty if the family's income in 2021 is below $32,338. Use the table to answer the questions that follow. Size of Family Unit One person (unrelated individual) None One Related Children under 18 Years Two Three Four Five Under 65 years 65 years and over Two persons Households under 65 years Households 65 years and over Three persons Four persons Five persons Six persons Seven persons Eight persons Nine persons or more 14,097 12,996 18,145 18,667 16,379 18,606 21,196 21,811 21,831 27,949 28,406 27,479 27,575 33,705 34,195 33,148 32,338 31,843 38,767 38,921 38,119 37,350 36,207 35,529 44,606 44,885 43,925 43,255 42,009 40,554 49,888 50,329 49,423 48,629 47,503 46,073 60,012 60,303 59,501 58,828 57,722 56,201 Source: "Poverty Thresholds for 2021 by Size of Family and Number of Related Children Under 18 Years," United States Census Bureau, https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-thresholds.html. Teresa and Sam are married, under the age of 65, and have four children under the age of 18. Sam works full time and earns $18,000, while Teresa works part time and earns $9,000. Thus, in total, their family income is $27,000. Are Sam and Teresa living in poverty? Yes No Suppose that Sam divorces Teresa and leaves the family without paying alimony or child support. Teresa must now support her four children alone, so she begins working full time and earns a total of $15,000. Are Teresa and her children living in poverty? Yes No Again, consider Teresa, a single mother with four children under 18 who earns an annual income of $15,000. Suppose that Teresa qualifies for a welfare program for single mothers that provides her with $5,000 in food assistance. After receiving welfare, is Teresa's family living in poverty? Yes No

Principles of Economics 2e
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Chapter15: Poverty And Economic Inequality
Section: Chapter Questions
Problem 47P: A group of 10 people have the following annual incomes:...
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2. Understanding the U.S. poverty line
The following table shows the U.S. poverty thresholds for 2021 by size of family and number of related children under the age of 18. All figures are in
dollars. For example, a family with two adults and three children is considered to be living in poverty if the family's income in 2021 is below $32,338.
Use the table to answer the questions that follow.
Size of Family Unit
One person (unrelated individual)
None
One
Related Children under 18 Years
Two Three
Four
Five
Under 65 years
65 years and over
Two persons
Households under 65 years
Households 65 years and over
Three persons
Four persons
Five persons
Six persons
Seven persons
Eight persons
Nine persons or more
14,097
12,996
18,145 18,667
16,379 18,606
21,196 21,811 21,831
27,949 28,406 27,479 27,575
33,705 34,195 33,148 32,338 31,843
38,767 38,921 38,119 37,350 36,207 35,529
44,606 44,885 43,925 43,255 42,009 40,554
49,888 50,329 49,423 48,629 47,503 46,073
60,012 60,303 59,501 58,828 57,722 56,201
Source: "Poverty Thresholds for 2021 by Size of Family and Number of Related Children Under 18 Years," United States Census Bureau,
https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-thresholds.html.
Transcribed Image Text:2. Understanding the U.S. poverty line The following table shows the U.S. poverty thresholds for 2021 by size of family and number of related children under the age of 18. All figures are in dollars. For example, a family with two adults and three children is considered to be living in poverty if the family's income in 2021 is below $32,338. Use the table to answer the questions that follow. Size of Family Unit One person (unrelated individual) None One Related Children under 18 Years Two Three Four Five Under 65 years 65 years and over Two persons Households under 65 years Households 65 years and over Three persons Four persons Five persons Six persons Seven persons Eight persons Nine persons or more 14,097 12,996 18,145 18,667 16,379 18,606 21,196 21,811 21,831 27,949 28,406 27,479 27,575 33,705 34,195 33,148 32,338 31,843 38,767 38,921 38,119 37,350 36,207 35,529 44,606 44,885 43,925 43,255 42,009 40,554 49,888 50,329 49,423 48,629 47,503 46,073 60,012 60,303 59,501 58,828 57,722 56,201 Source: "Poverty Thresholds for 2021 by Size of Family and Number of Related Children Under 18 Years," United States Census Bureau, https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-thresholds.html.
Teresa and Sam are married, under the age of 65, and have four children under the age of 18. Sam works full time and earns $18,000, while Teresa
works part time and earns $9,000. Thus, in total, their family income is $27,000. Are Sam and Teresa living in poverty?
Yes
No
Suppose that Sam divorces Teresa and leaves the family without paying alimony or child support. Teresa must now support her four children alone, so
she begins working full time and earns a total of $15,000. Are Teresa and her children living in poverty?
Yes
No
Again, consider Teresa, a single mother with four children under 18 who earns an annual income of $15,000. Suppose that Teresa qualifies for a
welfare program for single mothers that provides her with $5,000 in food assistance. After receiving welfare, is Teresa's family living in poverty?
Yes
No
Transcribed Image Text:Teresa and Sam are married, under the age of 65, and have four children under the age of 18. Sam works full time and earns $18,000, while Teresa works part time and earns $9,000. Thus, in total, their family income is $27,000. Are Sam and Teresa living in poverty? Yes No Suppose that Sam divorces Teresa and leaves the family without paying alimony or child support. Teresa must now support her four children alone, so she begins working full time and earns a total of $15,000. Are Teresa and her children living in poverty? Yes No Again, consider Teresa, a single mother with four children under 18 who earns an annual income of $15,000. Suppose that Teresa qualifies for a welfare program for single mothers that provides her with $5,000 in food assistance. After receiving welfare, is Teresa's family living in poverty? Yes No
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