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The Official Poverty Level Is Based on Pretax Income Including

Question 228

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The official poverty level is based on pretax income including cash. Which of the following statements is correct regarding this official specification of poverty?


A) This is a good definition of poverty since it is made up of the income from productive resources.
B) This is not a good definition of poverty because our tax structure consists of different tax brackets based on income.
C) This is not a good definition of poverty because it does not include in-kind subsidies.
D) This is a good definition of poverty because it is easy to measure.

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