Question

61    The poverty line is

Select one:

a. a. an absolute level of income below which a family is deemed to be in poverty.

b. a. established by the federal government.

c. a. approximately equivalent to three times the cost of providing an adequate diet.

d. a. All of the above are correct.

62.

    Which of the following statements accurately characterizes the effects of minimum-wage laws?

Select one:

a. a. The effects of minimum-wage laws depend strongly on the elasticity of demand.

b. a. All of the above accurately characterize the effects of minimum-wage laws.

c. a. Some workers who might have been employed at a lower wage become unemployed.

d. a. Those workers who remain employed benefit from a higher wage.

Answer 1

61) Poverty line:

Option A is correct because people earning below a specific amount is considered poor.

Option B is correct because it was first elaborated by Federal government in 1964.

Option C is correct because poverty line is set as three time of cost of adequate diet because poor people usuallly spend one third of their income on food.

Thus, option D is correct.

62) Minimum wage laws:

Option A is correct because minimum wage make low income labor more richer and high income labor poorer.

Option C is correct because setting a minimum wage above the wage of some of the labor will induce producers to fire them.

Option D is correct because workers who remain employed benefit from higher wage because they get higher payout.

Option B is correct.