Question : The poverty line is defined as:
Option 1: The minimum wage set by the government
Option 2: The level of income below which a person or a household is considered poor
Option 3: The average income in an economy
Option 4: The level of income above which a person or a household is considered rich
Correct Answer: The level of income below which a person or a household is considered poor
Solution : The correct answer is (b) The level of income below which a person or a household is considered poor.
The poverty line is a threshold that defines the minimum level of income or consumption below which individuals or households are considered to be living in poverty. It is typically set by governments or relevant institutions based on specific criteria and considerations.
The poverty line aims to establish a standard that distinguishes individuals or households who have insufficient resources to meet their basic needs from those who are above the poverty threshold. The specific definition of the poverty line can vary across countries and regions, as it takes into account factors such as the cost of living, household size, and basic necessities.
It's important to note that the poverty line is not equivalent to the minimum wage set by the government, which is a separate policy measure determining the minimum compensation level for employment. The poverty line focuses on income or consumption levels and serves as a measure of poverty rather than a wage standard.
Question : Inflation is defined as:
Option 1: A sustained increase in the general price level
Option 2: A sustained decrease in the general price level
Option 3: A temporary increase in the general price level
Option 4: A temporary decrease in the general price level
Question : What is a common approach to alleviating poverty?
Option 1: Reducing access to education
Option 2: Decreasing minimum wage
Option 3: Providing social welfare programs
Option 4: Limiting healthcare access
Question : A situation in which a person is not willing to work at the existing wage rate.
Option 1: full employment
Option 2: Involuntary unemployment
Option 3: voluntary unemployment
Option 4: none of these
Question : The marginal propensity to save (MPS) is defined as the:
Option 1: Proportion of income that is saved
Option 2: Proportion of income that is consumed
Option 3: Proportion of income that is taxed
Option 4: Proportion of income that is invested
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