GMAT Exam > GMAT Questions > The poverty line, also known as the poverty t...
Start Learning for Free
The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.
The primary purpose of the passage is to
- a)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in poverty
- b)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty lines
- c)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systems
- d)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate results
- e)propose that the poverty line be replaced by an improved system of calculation for the minimum income required
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
The poverty line, also known as the poverty threshold, is defined as t...
Passage Analysis
Summary and Main Point
This is a Main Idea question. The correct answer must be broad enough to encompass all of the paragraphs of the passage without veering outside the scope. Incorrect answer choices are often too narrow or focus only on one part of the passage.
The correct answer for this question should match the results of our passage analysis: that the author believes that the poverty line may not actually be the most reliable indicator of how many people actually live in poverty.
Answer Choices
A
suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in poverty
Incorrect: Out of Context
The reference to developed countries is made in the context of a larger point that describes one of the two listed shortcomings of the way PL is calculated. This discussion forms a part of the whole passage that is designed to lead us to the author’s conclusion, which deals with all countries and not just developed ones.
B
provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty lines
Incorrect: Out of Context
Like choice A, this choice too focuses on a detail mentioned in the passage and presents it in the wrong context. The economic prosperity mentioned in the choice could relate to developed nations mentioned in the passage; however, as stated in the explanation for choice A, the reference to developed countries is made in the context of a larger point that describes one of the two listed shortcomings of the way PL is calculated. These two shortcomings form a part of a larger discussion.
C
identify the reasons that the poverty line does not account for certain sources of income such as social welfare systems
Incorrect: Out of Scope
The passage identifies reasons to support the conclusion that PL may be unreliable indicator of poverty because of the way it is calculated. One of these reasons is the fact that the calculation does not consider certain sources of income such as social welfare. The passage goes not identify the reasons for the same.
D
argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate results
Correct
This choice matches the result of our passage analysis and pre-thinking.
E
propose that the poverty line be replaced by an improved system of calculation for the minimum income required
Incorrect: Out of Scope
The author does not make any suggestion in the passage.
Most Upvoted Answer
The poverty line, also known as the poverty threshold, is defined as t...
Passage Analysis
Summary and Main Point
This is a Main Idea question. The correct answer must be broad enough to encompass all of the paragraphs of the passage without veering outside the scope. Incorrect answer choices are often too narrow or focus only on one part of the passage.
The correct answer for this question should match the results of our passage analysis: that the author believes that the poverty line may not actually be the most reliable indicator of how many people actually live in poverty.
Answer Choices
A
suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in poverty
Incorrect: Out of Context
The reference to developed countries is made in the context of a larger point that describes one of the two listed shortcomings of the way PL is calculated. This discussion forms a part of the whole passage that is designed to lead us to the author’s conclusion, which deals with all countries and not just developed ones.
B
provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty lines
Incorrect: Out of Context
Like choice A, this choice too focuses on a detail mentioned in the passage and presents it in the wrong context. The economic prosperity mentioned in the choice could relate to developed nations mentioned in the passage; however, as stated in the explanation for choice A, the reference to developed countries is made in the context of a larger point that describes one of the two listed shortcomings of the way PL is calculated. These two shortcomings form a part of a larger discussion.
C
identify the reasons that the poverty line does not account for certain sources of income such as social welfare systems
Incorrect: Out of Scope
The passage identifies reasons to support the conclusion that PL may be unreliable indicator of poverty because of the way it is calculated. One of these reasons is the fact that the calculation does not consider certain sources of income such as social welfare. The passage goes not identify the reasons for the same.
D
argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate results
Correct
This choice matches the result of our passage analysis and pre-thinking.
E
propose that the poverty line be replaced by an improved system of calculation for the minimum income required
Incorrect: Out of Scope
The author does not make any suggestion in the passage.
Free Test
FREE
| Start Free Test |
Community Answer
The poverty line, also known as the poverty threshold, is defined as t...
Passage Analysis
Summary and Main Point
This is a Main Idea question. The correct answer must be broad enough to encompass all of the paragraphs of the passage without veering outside the scope. Incorrect answer choices are often too narrow or focus only on one part of the passage.
The correct answer for this question should match the results of our passage analysis: that the author believes that the poverty line may not actually be the most reliable indicator of how many people actually live in poverty.
Answer Choices
A
suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in poverty
Incorrect: Out of Context
The reference to developed countries is made in the context of a larger point that describes one of the two listed shortcomings of the way PL is calculated. This discussion forms a part of the whole passage that is designed to lead us to the author’s conclusion, which deals with all countries and not just developed ones.
B
provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty lines
Incorrect: Out of Context
Like choice A, this choice too focuses on a detail mentioned in the passage and presents it in the wrong context. The economic prosperity mentioned in the choice could relate to developed nations mentioned in the passage; however, as stated in the explanation for choice A, the reference to developed countries is made in the context of a larger point that describes one of the two listed shortcomings of the way PL is calculated. These two shortcomings form a part of a larger discussion.
C
identify the reasons that the poverty line does not account for certain sources of income such as social welfare systems
Incorrect: Out of Scope
The passage identifies reasons to support the conclusion that PL may be unreliable indicator of poverty because of the way it is calculated. One of these reasons is the fact that the calculation does not consider certain sources of income such as social welfare. The passage goes not identify the reasons for the same.
D
argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate results
Correct
This choice matches the result of our passage analysis and pre-thinking.
E
propose that the poverty line be replaced by an improved system of calculation for the minimum income required
Incorrect: Out of Scope
The author does not make any suggestion in the passage.
Attention GMAT Students!
To make sure you are not studying endlessly, EduRev has designed GMAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in GMAT.
|
Explore Courses for GMAT exam
|
|
Top Courses for GMATView all
The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer?
Question Description
The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer?.
The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer?.
Solutions for The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT.
Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
Here you can find the meaning of The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The poverty line, also known as the poverty threshold, is defined as the minimum level of income that is necessary for the people of a specific nation. The poverty line of a country is calculated by identifying the total amount of necessary expenses that an average adult requires over the course of one year, with the main such expense usually being house rent. Additionally, this calculation also typically includes the basic expenses of food and clothing. This measure of minimum income required is purely quantitative and does not estimate either the specific needs of people from different low-income groups or the different ways in which low-income groups experience poverty in different countries. The solely quantitative basis of calculating the minimum required income, therefore, may in fact lead to either the overestimation or the underestimation of the number of people who actually live under the poverty line in a given country. Another reason that renders the poverty line short of being a very reliable indicator of actual poverty levels is that certain nations, usually developed ones, with strong welfare systems fail to account for ‘in-kind’ transfers when calculating the poverty threshold. Such calculations do not regard the benefits received from antipoverty programs such as food stamps, housing assistance, etc. as income, thereby presenting a distorted picture of the level of poverty in the nation.The primary purpose of the passage is toa)suggest that the poverty line should not be used as an indicator of actual poverty levels in developed nations, since its use could lead to a miscalculation of the number of people actually living in povertyb)provide a basis for the conclusion that the economic prosperity of certain countries may lead to a miscalculation of their respective poverty linesc)identify the reasons that the poverty line does not account for certain sources of income such as social welfare systemsd)argue that, because of the way it is calculated, poverty line, as a measure of the number of people living in poverty, may give inaccurate resultse)propose that the poverty line be replaced by an improved system of calculation for the minimum income requiredCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice GMAT tests.
|
|
Explore Courses for GMAT exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup