Comparisons of high and low incomes raise two different issues: economic inequality and poverty. Poverty is measured by the number of people who fall below a certain level of income—called
the poverty line
—that defines the income needed for a basic standard of living.
Which term refers to the specific amount of income needed for a basic standard of living?
Poverty
is measured by the number of people who fall below. a certain level of income. the income needed for a basic standard of living. the nation’s economic poverty line.
What is the term for the group of government programs that provide assistance to the poor and the near poor?
The groups of government programs that assist the poor are called
the safety net
. In the United States, prominent safety net programs include Temporary Assistance to Needy Families (TANF), the earned income credit (EIC), Medicaid, and Food Stamps.
What term best describes taking income from those with higher incomes and providing income to those with lower incomes?
In the following PPF, the tradeoff between economic output and equality initially _____________, which suggests that certain programs might increase both output and economic equality.
Redistribution
means taking income from those with higher incomes and providing income to those with lower incomes.
What does poverty line mean?
Poverty line is
the level of income to meet the minimum living conditions
. Poverty line is the amount of money needed for a person to meet his basic needs. It is defined as the money value of the goods and services needed to provide basic welfare to an individual.
What are the 3 types of poverty?
- Absolute poverty.
- Relative Poverty.
- Situational Poverty.
- Generational Poverty.
- Rural Poverty.
- Urban Poverty.
What is poverty line class 9?
A person is
considered poor if his or her income or consumption level falls below a given “minimum level” necessary to fulfil the basic needs
. This minimum level is called the poverty line.
What safety net exists today?
Today,
Social Security
is the largest safety net program in the U.S. In 2017 it will reach an estimated 62 million Americans with $955 billion in benefits. For more information visit the Social Security Administration online.
What is a safety net and why is a safety net important?
The Social Safety Net of the United States is made up of various Welfare Programs to protect low-income Americans from poverty and hardship. The programs are meant to be a safety net to catch Americans if they fall on hard times. The goal is
to get Americans of sound body and mind back on their feet
.
What are some criticisms of in kind assistance programs for those in poverty?
What are some criticisms of in-kind assistance programs for those in poverty?
It is paternalistic and disrespectful
. In-kind assistance is inefficient. The assistance can be used for undesirable purposes.
What are the 5 reasons for income inequality?
- Technology has altered the nature of work. …
- Globalization. …
- The rise of superstars. …
- The decline of organized labor. …
- Changing, and breaking, the rules.
What are the 5 causes of poverty?
- Increase rate of rising population: …
- Less productivity in agriculture: …
- Less utilization of resources: …
- A short rate of economic development: …
- Increasing price rise: …
- Unemployment: …
- Shortage of capital and able entrepreneurship: …
- Social factors:
What is the gap between rich and poor called?
Economic inequality
(also known as the gap between rich and poor) consists of disparities in the distribution of wealth and income.
What is the poverty line 2020?
| Persons in family/household Poverty guideline | 1 $12,760 | 2 $17,240 | 3 $21,720 | 4 $26,200 |
|---|
How do you get a poverty line?
Poverty Threshold: The poverty threshold in absolute measurement of poverty is set using the
monetary value of the basket of essential products
(required for basic needs) and every household whose income is less than this value will be classified as poor.
What is poverty line how is it determined?
The Census Bureau determines poverty status by using an official poverty measure (OPM) that
compares pre-tax cash income against a threshold that is set at three times the cost of a minimum food diet in 1963 and adjusted for family size
.
