ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 18, Problem 2.6P
To determine
The method for the official poverty level as calculated by the U.S. Department of Agriculture and the government assistance programs that the Census Bureau considers or ignores when calculating household income
Concept Introduction:
Official Poverty Level – It is an economic measure to find out whether the family or individual with certain income level qualifies for government assistance.
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Access to Education and Poverty: 2005 Data
FIGURE 2
College completion by income status and 8th grade test scores
A top-scoring, low-income student has about the same chance of completing college
as a low-scoring, high-Income student
Percent completing college
80%
74%
70%
Low score
Middle score
60%
High score
51%
50%
47%
40%
306
30%
2996
21%
20
10%
8%
396
Middle Income
High Income
Low Income
Note: Low income is defined as the bottom 25%, middle income middle 50 and high income is top 25%.
Source: Ehse Gould, "High-scoring, low-income students no more ikely to complete college than lowscoring, rich students,I
*The Economik Policy tnstitute Biog, March 9, 2012. available at http//www.epi.org/blog/college graduation-scores-income
levels/. See also Mary Ann Fox, Brooke A. Connolly, and Thomas D. $nyder, "Youth tndicators 2005: Trends in the Well-Being
of American Youth." (Washington, DC US. Department of Education, 2005).
* YouTube Q 3
4:41 / 5:01
CC
According to a 2005 U.S. Department of…
What is net factor income from Abroad(NIFA).
This indicator calculates the proportion of the population with incomes below the estimated poverty line:
Select one:
a.
Head Count Ratio
b.
Income Gap Ratio
c.
Human Poverty Index
d.
Human Development Index
Knowledge Booster
Similar questions
- What is the poverty line?arrow_forwardHow does the poverty trap discourage people from working?arrow_forwardThe table shows the distribution of personal income in the United States in 2016. Percentage of total income Households Poorest 20 percent 3.1 Second 20 percent Third 20 percent Fourth 20 percent Richest 20 percent 8.2 14.3 23.2 51.2 For all U.S. households to receive an equal share of income, what percentage of total income would the poorest 20 percent of households have to receive from higher-income groups? What percentage would the second poorest have to receive? >>> Answer to 1 decimal place. The poorest 20 percent of households would have to receive percent. The second poorest 20 percent of households have to receive percent.arrow_forward
- Describe how each of these changes is likely to affect poverty and inequality: Incomes rise for low-income and high-income workers, but rise more for the high-income earners. Incomes fall for low-income and high-income workers, but fall more for high-income earners.arrow_forward7. Study Questions and Problems #7 Use the following exhibit to answer the following two questions. 1959 1970 Official Poverty Rate for All Persons 22% 1975 1980 1985 13% 12% 13% 14% 1990 1995 14% 14% 2000 2005 2010 2015 11% 13% 15% 14% Source: U.S. Bureau of the Census, Income and Poverty in the United States, Census.gov.. What percentage of families in the United States were classified as in poverty in 2020? ○ 12% ○ 13% 11% ○ 15% Use the following exhibit to answer the next two questions. Characteristic Region South West Midwest Northeast Type of Family Headed by married couple Headed by male, no spouse present Headed by female, no spouse present Education of Household Head No high school diploma High school diploma, no college Bachelor's degree or more Percentage Below the Poverty Line 13% 11 10 10 5 11 23 25 13 4 Source: "U.S. Bureau of the Census, "Income and Poverty in the United States.census.gov Tables B-1 and B-2.." True or False: The South was the region with the lowest…arrow_forwardLabor Income, Tax Pald, and Average Tax Rate Individual Samantha Charles Amanda Young Labor Income (dollars) $45,000 60,000 80,000 105,000 Tax Paid (dollars) $100 100 100 100 Instructions: Round your answers to 2 decimal places. Average Tax Rate (percent) de dese % dearrow_forward
- Cumulative Percentage of National Income 100 50 10 Country A 0 50 80 Figure 1 A7. 100 Percentage of the Population Refer to FIGURE 1. Calculate the Gini coefficient for country A.arrow_forwardWhich of the following statements is correct? [Select one answer] Chronic poor are those whose incomes on average are above the poverty line but they never escape poverty. No option is correct Persistent poor are those whose incomes on average are below the poverty line but they never escape poverty. Transient poor are those whose incomes on average are below the poverty line but they may escape poverty sometimes.arrow_forwardFind domestic income if nation income is $4600 and NFIA is $5400?arrow_forward
- What is the difference between poverty and income inequality?arrow_forwardDefine gross incomes?arrow_forwardThe table below shows labor income for four individuals and the amount each has paid in income taxes. Labor Income, Tax Paid, and Average Tax Rate Individual Labor Income (dollars) Tax Paid (dollars) Average Tax Rate (percent) Samantha $45,000 $3,600 ________% Charles 65,000 6,500 ________% Amanda 82,000 13,120 ________% Young 110,000 119,800 ________% Instructions: Enter your answers as a whole number. Complete the table above by calculating the average tax rate paid by each individual. Is the income tax depicted here progressive, regressive, or proportional? ____ The income tax is progressive. ____ The income tax is proportional. ____ The income tax is regressive.arrow_forward
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