Suppose the average value of in-kind transfers increases by $2,000 from 2013 to 2014. The poverty rate a. is more likely to understate the true level of poverty. b. is more likely to overstate the true level of poverty. c. will increase by $2,000 divided by the poverty level. d. Both b and c are correct.
Suppose the average value of in-kind transfers increases by $2,000 from 2013 to 2014. The poverty rate a. is more likely to understate the true level of poverty. b. is more likely to overstate the true level of poverty. c. will increase by $2,000 divided by the poverty level. d. Both b and c are correct.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter12: Income Distribution, Poverty, And Discrimination
Section: Chapter Questions
Problem 3SQP
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Transcribed Image Text:Suppose the average value of in-kind transfers increases by $2,000 from 2013 to 2014. The poverty rate
a. is more likely to understate the true level of poverty.
b. is more likely to overstate the true level of poverty.
c. will increase by $2,000 divided by the poverty level.
d. Both b and c are correct.
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