Identify whether each of the following proposed poverty measures is an absolute or relative measure of poverty, and discuss whether poverty could ever be eliminated if that measure were utilized.

a. An inflation-adjusted annual income of \(25,000 for an urban family of four

b. Individuals with annual incomes among the lowest 15 percent

c. An inflation-adjusted annual income of \) 10,000 per person

Short Answer

Expert verified

a. absolute poverty

b. relative poverty

c. absolute poverty

Step by step solution

01

Given Information

Absolute Poverty alludes to a condition where the family income is under a fundamental level to keep up with essential expectations for everyday comforts.

Relative Poverty alludes to a condition where the family income is a sure rate beneath the middle

02

Explanation Part (a)

An inflation-adjusted yearly income of $25000for a metropolitan group of four: This is an instance of Absolute Poverty. On the off chance that the appropriate measures are taken to further develop development and advancement, the income of people would rise in like manner. Then, at that point, we can say that outright destitution is disposed of.

03

Explanation Part (b)

Individuals with yearly incomes are among the most reduced 15%: This is the situation of relative poverty. Assuming appropriate moves are initiated to work on the income of the relative multitude of people who has a place with the gathering of least15%, then we can say that the neediness has been disposed of.

04

Explanation Part (c)

An inflation-adjusted yearly income of $10000per individual: This is once more, an instance of Absolute Poverty. Assuming the arrangements of development and improvement would have the option to raise the income above$10000then we can say that the destitution has been diminished.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Some economists have argued that if the government wishes to subsidize health care, it should instead provide predetermined amounts of payments (based on the type of health care problems experienced) directly to patients, who then would be free to choose their health care providers. Whether or not you agree, can you give an economic rationale for this approach to governmental health care funding?

Take a look at both Figure 30-8 and Figure 30-9. When health care programs such as Medicare, Medicaid, and the Affordable Care Act's health exchange system were created, Congress based projected costs on quantities of health care consumed at the time the programs were implemented. Was this a reasonable assumption given that the programs all cut out-of-pocket payments for beneficiaries? Explain.

During the past decade, many members of the baby boom generation have passed through ages ranging from the middle 40s to the late 50s. Do you suppose that the fact that there have been more members of this generation than other generations in the population during this past decade tends to imply that there was higher or lower measured inequality over the period? Why?

What do you think motivates proposals to require sellers of disposable diapers to print messages on diapers encouraging parents to tell stories for or read to their babies or young children?

Consider the graph nearby, which depicts Lorenz curves for countries X, Y, and Z.

a. Which country has the least income inequality?

b. Which country has the most income inequality?

c. Countries Y and Z are identical in all but one respect: population distribution. The share of the population made up of children below working age is much higher in country Z. Recently, however, birthrates have declined in country Z and risen in country Y. Assuming that the countries remain identical in all other respects, would you expect that in 20 years the Lorenz curves for the two countries will be closer together or farther apart? (Hint: According to the age-earnings cycle, what typically happens to income as an individual begins working and ages?)

See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free