Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 20, Problem 2TY
To determine
The actual poverty line and the poverty line that adjusted only for inflation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Since the official poverty line was set at $3000 in 1964, prices have risen by about a factor of 7.5. If the poverty line was adjusted only for inflation, what would it be now? How does that compare with the actual poverty line?
If the poverty line was adjusted only for inflation, what would it be now? How does that compare with the actual poverty line?
What do you think about the income trap - is it a myth or reality? How does the middle-income trap affect the equality and poverty of citizens? What can be done to avoid or escape from the trap?
Answer correctly and explain within 40 mins will give you positive feedback.
Chapter 20 Solutions
Economics: Principles & Policy
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- what would happen if Governments increase the level of welfare payments.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_forwardDefine poverty line ?arrow_forward
- Federal Income Tax Withholding Bob Browning's weekly gross earnings for the present week were $2,290. Browning has four exemptions. Using the wage bracket withholding table in Exhibit 2 with a $81 standard withholding allowance for each exemption, what is Browning's federal income tax withholding? Round your answer to two decimal places. Feedbackarrow_forwardIn country A, its population is 300 million, and 50 million people are living below the poverty line. What is the poverty rate? In country B, the population is 900 million and 100 million people are living below the poverty line. What is the poverty rate?arrow_forwardIf a family of three earned $21,000 in 2017, would they be able to make ends meet given the official poverty threshold? What is the poverty line for a family of three? (Use 2017 poverty line).arrow_forward
- Talk with some classmates about how much a family of four (two parents and two young children) in your area would have to pay each year for food, clothes, a place to live, energy, and other basic needs. What number do you get? How does this amount of money relate to the 2010 poverty line of $ 22, 213 for a family of four?arrow_forwardIn 2018, the poverty rate was 4.7% for married couple families and 12.7% for father-only single-parent families. What was the poverty rate for mother-only single parent-families?arrow_forwardUse 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_forward
- Eric earns a base salary of $50,000 as a shipwreck diver and is subject to the following hypothetical income tax bracket. Eric is considering taking on an additional dive that will increase his income by $5,000. In order for Eric to deem the dive worth his time, it must earn him $3,000 after taxes. Please round all answers to two decimal places. Income $0-$10,000 $10,001-$30,000 $30,001-$50,000 $50,001+ Tax rate 5% 10% 20% 50% What is the marginal tax rate associated with taking on this dive? What is Eric's average tax rate if the extra dive is accepted? Given the information, will Eric undertake this extra dive? yes no O need more information How much does Eric end up paying in taxes?arrow_forwardWhat makes the Earned Income Tax Credit (EITC) different from other poverty-fighting programs? The amount of the credit is doubled if the head of household is attending college. The tax credit is phased out gradually, rather than at a specific income cutoff point. The amount of the credit is not determined by the number of dependent children in the household. The EITC doesn't require the recipient to pay a minimum amount of income tax in order to receive the credit. It creates less of an incentive to work than other programs.arrow_forwardIn 2018, the poverty threshold was raised to $24,858 from the 2010 threshold of $22,113 for a two-parent, two-child household. What could be some reasons for this change?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Survey of Economics (MindTap Course List)EconomicsISBN:9781305260948Author:Irvin B. TuckerPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Survey of Economics (MindTap Course List)
Economics
ISBN:9781305260948
Author:Irvin B. Tucker
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning