Suppose someone criticizes the federal measure of the poverty line by saying that the typical family spends less of its budget on food than families used to spend.This is an example of which of the following criticisms of the federal poverty line?
A) It is based on an oversimplified definition of family size.
B) The bundle has changed.
C) Differences in the cost of living across areas are ignored.
D) It is inconsistent with international measures.

Question

Quizplus · Accepted Answer

This criticism refers to the fact that the federal poverty line is based on a bundle of goods and services that was established in the 1960s and has changed since then. This is important because it means that the poverty line may not accurately reflect current needs and realities. The criticism does not relate to the oversimplified definition of family size, differences in the cost of living across areas, or international measures.

Suppose Someone Criticizes the Federal Measure of the Poverty Line