Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 12, Problem 4SQP
To determine
The poverty threshold income.
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If the poverty threshold is approximately $16,000 for a household of three, what is the ratio of income to poverty for a household of three that earns $12,000?
1.33
0.75
1.20
0.90
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"?
Poverty and Income Distribution: End of Chapter Problems
4. Currently, the poverty threshold for a family of four is just over $25,000 a year. Among the given factors that affect poverty,
indicate those that the official poverty threshold accounts for and those that it does not.
Accounted for by the official poverty threshold
Not accounted for by the official poverty threshold
Answer Bank
Differences in tax rates between different locales
Inflation
The cost of essential living expenses
Changes in noncash benefits
Geographical differences in the cost of living
Chapter 12 Solutions
Micro Economics For Today
Ch. 12.2 - Prob. 1YTECh. 12.2 - Prob. 2YTECh. 12.5 - Prob. 1.1YTECh. 12.5 - Prob. 2.1YTECh. 12 - Prob. 1SQPCh. 12 - Suppose each family in the United States earned an...Ch. 12 - Prob. 3SQPCh. 12 - Prob. 4SQPCh. 12 - Prob. 5SQPCh. 12 - Prob. 6SQP
Ch. 12 - Prob. 7SQPCh. 12 - Prob. 8SQPCh. 12 - Prob. 9SQPCh. 12 - Prob. 10SQPCh. 12 - Prob. 11SQPCh. 12 - Prob. 1SQCh. 12 - Prob. 2SQCh. 12 - Prob. 3SQCh. 12 - Prob. 4SQCh. 12 - Prob. 5SQCh. 12 - Prob. 6SQCh. 12 - Prob. 7SQCh. 12 - Prob. 8SQCh. 12 - Prob. 9SQCh. 12 - Prob. 10SQCh. 12 - Prob. 11SQCh. 12 - Prob. 12SQCh. 12 - Prob. 13SQCh. 12 - Prob. 14SQCh. 12 - Prob. 15SQCh. 12 - Prob. 16SQCh. 12 - Prob. 17SQCh. 12 - Prob. 18SQCh. 12 - Prob. 19SQCh. 12 - Prob. 20SQ
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Similar questions
- 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?arrow_forwardOutline the economic costs and benefits associated with income inequality.arrow_forwardUse 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?arrow_forward
- Dina and Charles are married, under the age of 65, and have two children under the age of 18. Charles works full time and earns $19,000, while Dina works part time and earns $9,000. Thus, in total, their family income is $28,000. Are Charles and Dina living in poverty? O Yes O No Suppose that Charles divorces Dina and leaves the family without paying alimony or child support. Dina must now support her two children alone, so she begins working full time and earns a total of $18,000. Are Dina and her children living in poverty? O Yes O No Again, consider Dina, a single mother with two children under 18 who earns an annual income of $18,000. Suppose that Dina qualifies for a welfare program for single mothers that provides her with $4,000 in food assistance. After receiving welfare, is Dina's family living in poverty? O Yes O Noarrow_forwardWhat groups in the U.S. population are most likely tolive in poverty?arrow_forwardIn measuring poverty, what are factors excluded in the main definition of poverty that are included in the Supplemental Poverty Measure? What factors are not included in the Supplemental Poverty Measure that you think are important in understanding and measuring poverty?arrow_forward
- Give a numerical example of how the headcount index doesn’t account for changes in the distribution below the poverty line. Assuming that the poverty line is 2, calculate the values of the index for each of the following distributions: a) (1, 2, 3) b) (1.5, 1.5, 3) c) (1, 2, 2, 3) d) (0.75, 2.5, 2.75)arrow_forwardWhich one of the following is the most likely to be associated with an increase in the incidence of poverty? A) The Gini coefficient falls substantially. B) The number of single persons with children and of single pensioners has increased substantially. C) The real income of those in the top 20% of income earners falls by 10%. D) The number of people earning below the level of income support has decreased.arrow_forwardWhich TWO of the following are most likely to be associated with an increase in the incidence of poverty? A. The Gini coefficient decreases in size substantially. B. Those who earn the top 20% of income see the income fall by 8%. C. More families are joining the South African middle class than ever before. D. If there is an increase in the prevalence of single parent homes due to disease.arrow_forward
- Give at least one (1) determinant of poverty and explain in detailarrow_forwardConsider an income distribution S: (10, 20, 30, 50, 100). Suppose it is divided into two groups, group A: (10, 30, 50) and group B: (20, 100). Let the poverty line be 30. (a) Show that for both Headcount and Poverty Gap, the weighted sum of poverty for group A and group B is the same as the overall poverty in S. (b) Now consider a relative poverty line which is 60 percent of the median income for each group. Will the decomposition rule still hold? Explain. Your answerarrow_forwardExplain the viacious cycle of povertyarrow_forward
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