MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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Question
Chapter 18, Problem 7IP
(a)
To determine
Effects of correcting the measured poverty.
(b)
To determine
Fairness of correcting measured poverty.
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Students have asked these similar questions
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 No
What is the population of Nigeria? Of that population, what percentage live in poverty (indicate the definition of poverty that is being used)? What is the average income in your country (hint: look for GNI)?
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.
Chapter 18 Solutions
MICROECONOMICS
Ch. 18.1 - Prob. 1QCh. 18.1 - Prob. 2QCh. 18.1 - Prob. 3QCh. 18.1 - Prob. 4QCh. 18.1 - Prob. 5QCh. 18.1 - Prob. 6QCh. 18.1 - Prob. 7QCh. 18.1 - Prob. 8QCh. 18.1 - Prob. 9QCh. 18.1 - Prob. 10Q
Ch. 18 - Prob. 1QECh. 18 - Prob. 2QECh. 18 - Prob. 3QECh. 18 - Prob. 4QECh. 18 - Prob. 5QECh. 18 - Prob. 6QECh. 18 - Prob. 7QECh. 18 - Prob. 8QECh. 18 - Prob. 9QECh. 18 - Prob. 10QECh. 18 - Prob. 11QECh. 18 - Prob. 12QECh. 18 - Prob. 13QECh. 18 - Prob. 1QAPCh. 18 - Prob. 2QAPCh. 18 - Prob. 3QAPCh. 18 - Prob. 4QAPCh. 18 - Prob. 5QAPCh. 18 - Prob. 1IPCh. 18 - Prob. 2IPCh. 18 - Prob. 3IPCh. 18 - Prob. 4IPCh. 18 - Prob. 5IPCh. 18 - Prob. 6IPCh. 18 - Prob. 7IPCh. 18 - Prob. 8IPCh. 18 - Prob. 9IP
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- Which of the following statements is not correct? Select one: a. The economic life cycle theory explains why gifts of goods and services reduce poverty for the very young and the very old. b. Because people can borrow and save to smooth out changes in income, their standard of living in any one year depends more on lifetime income than on a particular year's income. c. The percentage of the population that suffers from long-term poverty is far smaller than the percentage of the population that suffers from short-term poverty because there is a high level of economic mobility in the United States. d. Permanent income is a better measure of a family's ability to buy the necessities of life than is transitory income.arrow_forwardComplete the following table to help you determine the poverty rate in Perkopia in 2019. To do this, begin by determining the total income of all individuals in each quintile using the fact that total annual income in the economy is $500,000,000. Next, determine the income of an individual in each quintile by dividing the total income of that quintile by the number of people in that quintile. (Hint: Recall that Perkopia has a population of 10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty line of $28,000. Quintile Share of Income in 2019 Total Income Individual Income Below Poverty Line? (Percent) (Dollars) (Dollars) Lowest 4.0 Second 10.0 Middle 16.0 Fourth 23.0 Highest 47.0 Using the information in this table, the poverty rate in Perkopia in 2019 is . Suppose that the government introduces a welfare program in…arrow_forward1. Income inequality and the poverty rate The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2019, the poverty line is set at an annual income of $40,850 for an individual. A Share of Total Income in Perkopia (Percent) Year Lowest Quintile Second Quintile Middle Quintile Fourth Quintile Highest Quintile 2001 4.0 10.0 16.5 23.0 46.5 2007 3.8 9.7 15.0 22.5 49.0 2013 3.4 8.8 14.8 22.0 51.0 2019 3.0 8.2 14.0 21.8 53.0 The data in the table suggest that there was income inequality from 2001 to 2019.arrow_forward
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