Chapter 14R, Problem 1MCQ

To determine

The poverty rate

Answer to Problem 1MCQ

From the available options, the correct option is the percentage of the population that earns less than the poverty threshold.

Explanation of Solution

The poverty rate is the percentage of the population that earns less than the poverty threshold which indicates the number of people who live below the poverty line is considered the poverty rate of the country. As per the data for the year 2021, people whose income is less than $33,148 are under the poverty rate and if people are living in poverty, it does not mean that they are bankrupt and unemployed. And, income quintile shows the percentage of the population with the lowest or highest income.

Therefore, the correct option is c (the percentage of the population that earns less than the poverty threshold).

Economics Concept Introduction

Introduction: The poverty rate shows the ratio of the number of people who are living below the poverty line in the country. The poverty rate in the country U is 11.6% in the year 2021.