Chapter 78, Problem 7MCQ

To determine

The statement which is true for poverty.

Answer to Problem 7MCQ

From the available options, the correct option is high-quality preschool education helps to end the poverty cycle.

Explanation of Solution

Data from the previous 20 years show that the poverty line has moved, and married couples are working harder than single people to support their families. Additionally, poverty cannot narrow the wealth difference, so choices a, b, c, and option d are erroneous as the poverty rate did not have a steady decrease in the last two decades. And married couples can have more income because both members will earn income.

The right answer is therefore e (high-quality preschool education helps to terminate the poverty cycle), as the poverty cycle can be reduced or ended by investing in children's education or raising the country's literacy rate.

Economics Concept Introduction

Introduction: The poverty rate shows the ratio of the number of people who are living below the poverty line in the country. The poverty rate in the country U is 11.6% in the year 2021.