What determines the official poverty threshold? Group of answer choices Income Income and cash transfer payments Income and all transfer payments Income and all kinds of government assistance
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The primary factor that determines the official poverty threshold is income. This includes the income of all members of a household from various sources such as wages, salaries, self-employment income, interest, dividends, and other forms of income. Show more…
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The poverty rate would be substantially lower if the market value of in-kind transfers were added to family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Let's say the program costs \$10,000 per recipient family. a. If the government gave each recipient family a \$10,000 check instead of enrolling them in the Medicaid program, do you think that most of these families would spend that money to purchase health insurance? Why? (Recall that the poverty level for a family of four is about \$23,000.) b. How does your answer to part (a) affect your view about whether we should determine the poverty rate by valuing in-kind transfers at the price the government pays for them? Explain. c. How does your answer to part (a) affect your view about whether we should provide assistance to the poor in the form of cash transfers or in-kind transfers? Explain.
Poverty Threshold Poverty thresholds are determined by the U.S. Census Bureau. A poverty threshold represents the minimum annual household income for a family not to be considered poor. In $2009,$ the poverty threshold for a family of four with two children under the age of 18 years was $ 21,756 $ . In 2017, the poverty threshold for a family of four with two children under the age of 18 years was 24,858. Assuming that poverty thresholds increase in a straight-line fashion, use the midpoint formula to estimate the poverty threshold for a family of four with two children under the age of 18 in $2013 .$ How does your result compare to the actual poverty threshold in 2013 of $\$ 23,624 ?$ Source: U.S. Census Bureau
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Poverty thresholds are determined by the U.S. Census Bureau. A poverty threshold represents the minimum annual household income for a family not to be considered poor. In 1998 , the poverty threshold for a family of four with two children under the age of 18 years was $\$ 16,530 .$ In $2008,$ the poverty threshold for a family of four with two children under the age of 18 years was $\$ 21,834$. Assuming poverty thresholds increase in a straight-line fashion, use the midpoint formula to estimate the poverty threshold of a family of four with two children under the age of 18 in $2003 .$ How does your result compare to the actual poverty threshold in 2003 of $\$ 18,660 ?$
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