ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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lowest amount of income that a family can make to maintain a basic standard of living
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highest amount of income that a family can make before they are considered rich
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lowest amount of taxes that the gov’t can collect
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highest number of people in a family that is permitted by tax law
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Detailed explanation-1: -Poverty thresholds are the dollar amounts used to determine poverty status. The Census Bureau assigns each person or family one out of 48 possible poverty thresholds. Thresholds vary by the size of the family and age of the members.
Detailed explanation-2: -Relative poverty is the condition in which people lack the minimum amount of income needed in order to maintain the average standard of living in the society in which they live.
Detailed explanation-3: -The Census Bureau tracks the poverty rate, which is the percentage of the country’s population whose income is below the poverty threshold. The threshold is adjusted every year to keep up with inflation.
Detailed explanation-4: -Absolute poverty (also called extreme poverty) is the lack of sufficient resources to secure basic life necessities, including amongst others safe drinking water, food, or sanitation.