Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 23, Problem 10DQ
Sub part (a):
To determine
In which age group the poverty rate is high.
Sub part (b):
To determine
In which countries the poverty rate is high.
Sub part (c):
To determine
In which group of people the poverty rate is high.
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A household with income that is two-thirds of the poverty threshold has ratio of income to poverty of
O 0.67.
O 1.50.
O 3.20.
O0.23.
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As income transfer programs accompanying the War on Poverty increased beginning in the latter half of the 1960s, what happened to poverty in the
United States? Check all that apply.
O The adjusted poverty rate has declined rapidly and is now less than half of the official poverty rate.
O The poverty rate declined substantially in the period before the War on Poverty, but not in the period after the start of the War on
Poverty.
O In 2018, the adjusted poverty rate was only 4 percentage points lower than the official rate in 1970.
O The War on Poverty has been largely ineffective in reducing the rate of poverty in the United States.
The government announces programs designed to reduce the share of income going to the top quintile from 60% to 20%.
You predict that the most likely result is that:
O mean household income will fall, because the highest income earners will earn less and work less.
median household income will rise, because some of the 40% of redistributed income will be transferred to the third
quintile.
after redistribution, each quintile will receive 20% of total wealth.
O the lowest quintile will receive the 40% taken from the top quintile and switch places.
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