One cost-of-living indicator shows that a salary of $40,000 in Santa Barbara,California,is equivalent to $14,000 in Wichita,Kansas.This is primarily because of the cost of housing,which is much less expensive in Wichita.What does this difference say about how the federal government calculates poverty?
A) It shows poverty is connected to the local cost of living, which reflects the differences in rates of poverty in different parts of the country.
B) It shows the poverty line is more or less accurate because it has been recalibrated to take into account housing costs.
C) It points to a flaw in the way the government calculates the poverty line as the standard is uniformly applied without regard to regional differences.
D) It points to a flaw in the way the government calculates the poverty line, as it proves there are far more poor people in the Midwest.

Question

Quizplus · Accepted Answer

The fact that the same salary has vastly different purchasing power in different parts of the country highlights the flaw in using a uniform poverty line that doesn't take into account regional differences in the cost of living. This suggests that the federal government should consider revising the way it calculates the poverty line to better reflect the reality of regional variations in costs.

One Cost-Of-Living Indicator Shows That a Salary of $40,000 in Santa