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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.
Which of the following can be inferred from the last two sentences of the passage?
  • a)
    By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.
  • b)
    Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them. 
  • c)
    A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations. 
  • d)
    These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.
  • e)
    Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program. 
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
The poverty line, also known as the poverty threshold, is defined as t...
Passage Analysis
Summary and Main Point
 
This is a Detail based inference question. Let’s go back to the relevant section of the passage and try to understand the implication of the information given by the author here. The author states that because the ‘in-kind’ benefits are not counted as income, the real extent of poverty in the nation is not calculated properly. In other words, the author says that these benefits should be treated as income while calculating the number of people living below the poverty line. Now, the natural implication of treating these benefits as income is that people who receive these benefits would have more income than is calculated otherwise. Therefore, the possibility that these people might actually not be under the poverty line surfaces, meaning that the extent of poverty is being over-estimated by not treating these benefits as income.
Answer Choices
A
By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.
Incorrect: Opposite
As discussed in the pre-thinking, the author treats the exclusion of such benefits from the calculation as a negative of the PL. However, this choice states the opposite of the thought expressed by the author.
B
Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them. 
Incorrect: Out of Scope
There is no such cause and effect relationship given in the passage. 
C
A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations. 
Incorrect: Inconsistent
This would have been the correct answer if the comparison with developing nations had been presented.  The author gives us no such comparison in the passage.
D
These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.
Correct
This answer choice is on the same lines as the implication we understood from the discussion in the pre-thinking portion.
E
Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program. 
Incorrect: Inconsistent
The author does imply that such benefits should be considered income, but to say that these people should not get benefits from any other poverty program is too extreme. All that the author intends to say is that such benefits should also be counted as income while determining how many people are under the poverty line. 
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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.Which of the following can be inferred from the last two sentences of the passage?a)By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.b)Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them.c)A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations.d)These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.e)Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program.Correct 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.Which of the following can be inferred from the last two sentences of the passage?a)By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.b)Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them.c)A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations.d)These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.e)Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program.Correct 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.Which of the following can be inferred from the last two sentences of the passage?a)By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.b)Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them.c)A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations.d)These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.e)Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program.Correct 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.Which of the following can be inferred from the last two sentences of the passage?a)By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.b)Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them.c)A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations.d)These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.e)Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program.Correct 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.Which of the following can be inferred from the last two sentences of the passage?a)By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.b)Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them.c)A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations.d)These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.e)Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program.Correct 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.
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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.Which of the following can be inferred from the last two sentences of the passage?a)By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.b)Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them.c)A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations.d)These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.e)Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program.Correct answer is option 'D'. 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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.Which of the following can be inferred from the last two sentences of the passage?a)By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.b)Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them.c)A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations.d)These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.e)Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program.Correct 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.Which of the following can be inferred from the last two sentences of the passage?a)By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.b)Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them.c)A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations.d)These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.e)Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program.Correct 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.Which of the following can be inferred from the last two sentences of the passage?a)By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.b)Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them.c)A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations.d)These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.e)Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program.Correct 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.Which of the following can be inferred from the last two sentences of the passage?a)By treating the benefits as income, the nations would not be correctly estimating the extent of poverty in their countries.b)Although the antipoverty programs give benefits to the people, their effects are not very significant and hence the nations fail to account for them.c)A calculation done with considering the benefits as income would present a more realistic picture of the poverty in the nation, just as it probably does in developing nations.d)These nations run a potential risk of overestimating the extent of poverty in their countries by not treating the benefits as income.e)Housing assistance and food stamps are indeed income for the people who receive them, and hence such people should not get benefits from any other antipoverty program.Correct answer is option 'D'. 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