20. Which of the following is included in the calculation of the official povert
ID: 1113647 • Letter: 2
Question
20. Which of the following is included in the calculation of the official poverty level in the United States? a. Medicare b. Medicaid c. Pretax money income d. Food vouchers e. Employer-provided health insurance 21. If the annual interest rate is 4 percent, a consumer who spends $100 today: a. will have to return $104 to a bank. b. will have to pay $104 next year to get the same set of goods. c. will receive $96 from a bank next year d. will have to pay $96 next year to get the same set of goods. e. is giving up the ability to spend $104 on goods next year. 22. Figure 15.4 shows the revenue and cost curves for a natural monopolist. The monopolist will set the price equal to if it is allowed to earn only a normal profit. Figure 15.4 AC nC I HR Quantty a. a b. b c. c d. f e. e 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 equalityExplanation / Answer
20. Option c
In the United States, before tax income of the individuals is used for calculating the poverty line.
21. option e
If the interest rate is 4%, then if the person keeps $100 in the bank today he will get $104 by the end of the year. This will enable him to spend $104 on goods next year. Thus, by spending $100 today he is giving up this ability.
22. Option e
The firm will set a price equal to e. The profit is maximised when MR=MC, the monopolist sets the price where this quantity meets demand curve.. This price is e.
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