Economic CH21

According to the most recent estimates, 896 million people lived in poverty (living on less than $1.90 per day) in 2012, or roughly _____% of the world's population.

13

In the United States, the poverty line was set in the 1960s by taking the cost of food for a family of a given size and multiplying it by Multiple choice question.

3

In the United States, the poverty line was set in the 1960s by taking the cost of food for a family of a given size and multiplying it by

3.

The government adjusts the official poverty line each year based on the

Consumer Price Index.

Defining poverty as income below a certain amount, fixed at a given point in time, is using a(n) poverty line.

absolute

Defining poverty as income below a certain amount, fixed at a given point in time, is using

an absolute poverty threshold measure.

The U.S. poverty definition does not account for differences in Multiple choice question.

cost of living in different parts of the country.

A relative poverty threshold can be misleading by defining someone living in a very rich country as "poor" because she has less than the people around her even though she has enough to

cover essential expenses.

In 2011, the Census Bureau introduced an alternative poverty measure that adjusts for

differences in the cost of living.

The government adjusts the official poverty line

each year.

The proportion of the population that lived in poverty plummeted throughout the 1960s and early 1970s, in part, because of1

economic growth.

Critics of the official U.S. poverty definition note that it fails to account accurately for expenditures other than

food

In the United States, the official poverty line is based on the price of

food.

People who grow up in poor families are

more likely to be poor

The absolute number of white people in poverty is higher than the absolute number of black or Hispanic people because there are

more white people in the United States.

The proportion of the population that lived in poverty plummeted throughout the 1960s and early 1970s, in part, because of

new government programs to assist the poor.

The percentage of the population that falls below the absolute poverty line is the

poverty rate

In 2011, the Census Bureau introduced an alternative poverty measure based on

prices of food, clothing, shelter and utilities.

In the United Kingdom, the poverty line is set at 60% of the median income. This is a(n) absoluteBlank 1Blank 1 absolute , Incorrect Unavailable poverty measure.

relative

To accurately capture a family's ability to consume essential goods like food, shelter, and clothing, absolute poverty thresholds must be defined carefully with

respect to the cost of living.