Use the following to answer question(s): Income Distribution in the United States

-If you establish the value of goods and services necessary to provide a minimum standard of living below which people are poor, you have come up with an income test that is called a(n):
A) means-tested test.
B) relative income test.
C) absolute income test.
D) nominal income test.

Question

Use the following to answer question(s): Income Distribution in the United States
 
-If you establish the value of goods and services necessary to provide a minimum standard of living below which people are poor, you have come up with an income test that is called a(n):
A) means-tested test. 
B) relative income test. 
C) absolute income test. 
D) nominal income test.

Quizplus · Accepted Answer

An absolute income test establishes the value of goods and services necessary to provide a minimum standard of living below which people are considered to be poor. This is different from a relative income test, which compares an individual's income to the average income in their society, and a means-tested test, which determines eligibility for government assistance based on a person's income and assets. A nominal income test simply evaluates an individual's income without adjusting for inflation or other factors.

Use the Following to Answer Question(s): Income Distribution in the United