20. Which of the following is included in the calculation of the offical poverty

Question

20. Which of the following is included in the calculation of the offical poverty level in the United States?

a. Medicare

b. Medicaid

c. Pretax money income

d. Food vouchers

e. Employer-provided health insurance

23. Using the Lorenz curve, the degree of income inequality is measured by:

a. the slope of the line connecting all points for which a given percentage of families receive exactly the cumulative percentage of income

b. the distance of the Lorenz curve from the line of perfect equality

c. the slope of the curve

d. the number of times the Lorenz curve crosses the line of perfect equality

e. dividing the number of people below the poverty line by the total population

25. If you win $1 million in a lottery and are paid in installments,____

a. the future value of these payment is $1 million

b. the present value of these payments equals $1 million if the interest rate is zero

c. the present value of these payments equal $1 million if the interest rate is 10 percent

d. the present value of the payments exceeds $1 million if the interest rate is positive

e. the future value of the payments is less than $1 million if the interest rate is equal to zero.

26. An initial public offering is:

a. the first scale of stock of a newly formed company to the public

b. the initial dividend which is paid to the shareholders of a company when the company makes a profit

c. a lump-sum payment given to the bondholders of a company after the first year of purchasing the bond

d. the initial sale of stocks of a company to a new favored enterprises at a low price

e. an initial investment made by the public in a company that is in financial trouble

Explanation / Answer

Answer -

Qusetion 20 - C

In the measurement of United states official poverty level pre tax cash income is taken into consideration and is compared against cost of minimum food diet threshold.

Question 23 - B

Lorenz curve measure the income inequality. It is measure by calculating the area between the line of perfect equality and the lorenz curve for measuring income inequality.

Question 25 - B

The present value of these payments in $ 1million if interest rate is equal to zero.

Question 26 - A

The first scale of stock of a newly formed company to the public.

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