Since 1963 prices have risen every year.As a result,the price of the poverty "basket" has risen as well.In 2009 it cost roughly $22,000 to purchase those same basic necessities for a family of four that cost only $3,000 in 1963.
-Which of the following explains why the U.S.poverty threshold increased from $3,000 per year in 1963 to $22,000 per year in 2009?
A)Americans are more spoiled now than they were in 1963.
B)The threshold includes more luxury items now than it did in 1963.
C)Inflation has caused the price for basic necessities to increase since 1963.

Question

Quizplus · Accepted Answer

Inflation is the gradual increase in prices of goods and services over a period of time. Since 1963, the general increase in prices (inflation) has caused the cost of basic necessities to rise, which has led to an increase in the poverty threshold from $3,000 to $22,000 per year in 2009. Choices A and B are incorrect as they do not provide a valid explanation for the increase in poverty threshold.

Since 1963 Prices Have Risen Every Year