Since the official poverty line was set at $3000 in 1964, prices have risen by about a factor of 7.5. If the poverty line was adjusted only for inflation, what would it be now? How does that compare with the actual poverty line?

Since the official poverty line was set at $3000 in 1964, prices have risen by about a factor of 7.5. If the poverty line was adjusted only for inflation, what would it be now? How does that compare with the actual poverty line?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter18: Income Distribution And Poverty

Section: Chapter Questions

Problem 6QFR

See similar textbooks

Related questions

Q: In 2018, the poverty threshold was raised to $24,858 from the 2010 threshold of $22,113 for a…

A: The poverty threshold or poverty line is the minimum amount of income needed to cover basic needs in…

Q: Use the following information to calculate poverty rates for the following two countries, Woolandia…

A: The poverty line is a predefined income threshold used to determine the minimum income deemed…

Q: In 2018, the poverty rate was 4.7% for married couple families and 12.7% for father-only…

A: Poverty: - Poverty is the economic condition of a person in which that person does not even possess…

Q: What do you think about the income trap - is it a myth or reality? How does the middle-income trap…

A: in the middle income situation countries growth rate stuck at some points due to various factors…

Q: Describe how the poverty line is estimated in India?

A: The lowest income deemed suitable in a given country is known as the poverty threshold, poverty…

Q: Although it is hard to separate the causes of poverty from the effects, there is no doubt that…

A: Economy refers to the system in which the production and consumption activities are interrelated. It…

Q: what would happen if Governments increase the level of welfare payments.

A: Welfare benefits are government implemented programs that help in increasing the standard of living…

Q: Eric earns a base salary of $50,000 as a shipwreck diver and is subject to the following…

A: Marginal tax rate on drive:Eric already earns the $50,000, so an extra earning income $5,000 above…

Q: Part C. Study the circle graph and table below to get answers to the questions that follow. Noroor…

A: The above Pie chart shows us the data of poverty in America in the decade of 1970s. From the given…

Q: Provide a definition of the “poverty line.” How does the government calculate the measure (give…

A: Poverty is the state of being poor. That is, lacking financial resources and necessities for a…

Q: In 2000, the ratio of people age 65 or older to people ages 20 to 64 in Ecocountry was 38,4 %. In…

A: Pay-As-You-Go is referred to as a pension plan for retirement in which the beneficiaries have the…

Q: Use the following information to calculate poverty rates for the following two countries, Woolandia…

A: The income that is enough to meet the basic needs of life is the poverty line. If an individual does…

Q: If the poverty guideline for a family of four is $25,750, what is the most that a household can earn…

Q: Talk with some classmates about how much a family of four (two parents and two young children) in…

A: The primary issue is to gauge the annual cost of living for a family of four (two grown-ups and two…

Q: Describe the concept poverty line in detail

A: Poverty is an economic state of being in which an individual experiences a dearth of resources to…

Q: Many economists believe that a more effective way to supplement the income of the poor is through a…

A: Taxes owed = (1/4 of income) - $10,000 --------------------- When income is $0 Taxes owed = (1/4 *0)…

Q: What percentage of families in the United States is classified as poor? Which demographic groups…

A: Poverty refers to the situation in which a family lacks the resources to meet basic needs such as…

Q: The concept of a poverty line raises a number of complex questions. Which of the following…

A: Poverty is defined as a lack of sufficient material goods or money to meet one's fundamental…

Q: If a family of three earned $21,000 in 2017, would they be able to make ends meet given the official…

A: Number of person in the family = 3 Total earning by three members = $21000

Q: How is the poverty rate calculated? What is the poverty line?

A: The poverty line refers to the number of people below a certain level of income. It states the…

Q: What makes the Earned Income Tax Credit (EITC) different from other poverty-fighting programs? The…

A: The Earned Income Tax Credit (EITC) is a policy of refundable tax credit for low- to moderate-…

Q: Poverty is measured by the number of people who fall below a certain level of income—called the…

A: In an economy, the term poverty is used to explains the income inequality as some of the people are…

Concept explainers

Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Use the following information to calculate poverty rates for the following two countries, Woolandia and Narnia. Set the poverty line to $365. What is the Poverty Gap Index for each country? What does this measure tell you that is different from the headcount index?
What do you think about the income trap - is it a myth or reality? How does the middle-income trap affect the equality and poverty of citizens? What can be done to avoid or escape from the trap? Answer correctly and explain within 40 mins will give you positive feedback.
In 2018, the poverty rate was 4.7% for married couple families and 12.7% for father-only single-parent families. What was the poverty rate for mother-only single parent-families?
Use the following information to calculate poverty rates for the following two countries, Woolandia and Narnia. Set the poverty line equal to $365. Calculate the Headcount Index measure of poverty for each country. What does this tell you (or not tell you) about poverty in the countries?
what would happen if Governments increase the level of welfare payments.
If a family of three earned $21,000 in 2017, would they be able to make ends meet given the official poverty threshold? What is the poverty line for a family of three? (Use 2017 poverty line).
Talk with some classmates about how much a family of four (two parents and two young children) in your area would have to pay each year for food, clothes, a place to live, energy, and other basic needs. What number do you get? How does this amount of money relate to the 2010 poverty line of $ 22, 213 for a family of four?
In 2018, the poverty threshold was raised to $24,858 from the 2010 threshold of $22,113 for a two-parent, two-child household. What could be some reasons for this change?
If the poverty guideline for a family of four is $25,750, what is the most that a household can earn to be considered "near-poor"?
What makes the Earned Income Tax Credit (EITC) different from other poverty-fighting programs? The amount of the credit is doubled if the head of household is attending college. The tax credit is phased out gradually, rather than at a specific income cutoff point. The amount of the credit is not determined by the number of dependent children in the household. The EITC doesn't require the recipient to pay a minimum amount of income tax in order to receive the credit. It creates less of an incentive to work than other programs.
Poverty is measured by the number of people who fall below a certain level of income—called the poverty line—that defines the income one needs for a basic standard of living. The official definition of the poverty line traces back to Group of answer choices A)The Great Depression B)Mollie Orshansky, whose idea was to define a poverty line based on the cost of a healthy diet. C)1953 and the ability to pay for housing and food. D)The 1965 cost of providing food, housing, and transportation.
Many economists believe that a more effective way to supplement the income of the poor is through a negative income tax. Under this scheme, everyone reports his or her income to the government; individuals and families earning a higher income will pay a tax based on that income, while low-income individuals and families receive a subsidy, or negative tax. Assume that the only qualification required to receive a tax credit is low income.