Chapter 15: Q. 19 (page 377)
Who are the near-poor?
Short Answer
Near poor individuals live off an income marginally above the poverty line.
Chapter 15: Q. 19 (page 377)
Who are the near-poor?
Near poor individuals live off an income marginally above the poverty line.
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Get started for freeWhat is the poverty line?
Explain how a country may experience greater
equality in the distribution of income, yet still
experience high rates of poverty. Hint: Look at the
Clear It Up "How do governments measure poverty in low-income countries?" and compare to Table 15.5.
Which set of policies is more likely to cause a tradeoff between economic output and equality: policies of redistribution or policies aimed at the ladder of opportunity? Explain how the production possibility frontier tradeoff between economic equality and output might look in each case.
Jonathon is a single father with one child. He can work as a server for \(6 per hour for up to 1,500 hours per year. He is eligible for welfare, and so if he does not earn any income, he will receive a total of \)10,000 per year. He can work and still receive government benefits, but for every \(1 of income, his welfare stipend is \)1 less. Create a table similar to Table 15.4 that shows Jonathanโs options. Use four columns, the first showing number of hours to work, the second showing his earnings from work, the third showing the government benefits he will receive, and the fourth column showing his total income (earnings + government support). Sketch a labor-leisure diagram of Jonathanโs opportunity set with and without government support.
What goods and services would you include in an estimate of the basic necessities for a family of four?
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