Question

Which of the following statements is NOT correct?

          a.       The poverty line (or poverty threshold) here in the United States is

approximately three times the amount needed to purchase an adequate diet.

          b.       The poverty line (or poverty threshold) here in the United States is about

$26,000 per year for a family of four.

          c.       Someone who works full-time for eight dollars per hour (-just above the minimum

wage-) will work approximately 2,000 hours over an entire year (40 hours times 50 weeks) – and earn about $16,000 (before taxes).

          d.       A family of four that holds down one-and-a-half minimum-wage jobs will have gross earnings ($16,000 + $8,000) well above the poverty line (or poverty threshold).

Answer 1

Statements a), b) and c) are correct.

The poverty line in USA is set at about $26,200 for a family of four.

The methodology used to calculate this is still the old way, where the basic amount needed to purchase an adequate diet is multiplied by 3.

If someone works for $8 an hour, 40 hours a week, for 50 weeks, he or she will earn $16,000 before taxes.

(8 x 40 x 50 = 16,000)

Therefore, from the given statements, statement d) is incorrect.

If we consider one and a half minimum wage jobs, that provide a gross earning of $24,000, it is still far lower than the threshold of $26,200 set for a family of four.

$24,000 an year would fall amongst the lowest salaries in the USA, and not adequate for a family of four.