Measure of poverty (example, the poverty line) and the distribution of income( for example, the Lorenz curve and the Gini coefficient) are misleading for which of the following two reasons? First, these measures do not take into account income mobility over time. Second, these measures ignore the effects of government programs meant to reduce poverty. First, these measures fail to include the income U.S. citizens earn working for foreign firms that have operations located in the United States. Second, these measures fail to include income foreign citizens earn working for U.S. firms that have operations in foreign countries. First, none of these measures are adjusted for inflation. Second, they do not measure income on a per capita basis. First, these measures fail to include dividend and interest income earned on stocks and bonds. Second, these measures fail to include the values of goods and services citizens make for this own consumptions that are not sold in markets.

Respuesta :

First, these measures fail to take into account income mobility over time. Second, these measures ignore the effects of government programs meant to reduce poverty.

Governmental and nongovernmental organisations use many metrics to measure poverty. Measurements can be either absolute—referring to a particular standard—or relative—depending on the situation. It is generally accepted that poverty is multifaceted, consisting of social, natural, and economic components positioned within larger socio-political processes.

According to the capacities approach, comprehending poverty requires a thorough grasp of poor people's views.The "economy food plan," which is based on the U.S. Department of Agriculture, is used as the basis for the country's definition of absolute poverty after inflation. The World Bank also uses an absolute definition of poverty. Extreme poverty is defined as surviving on less than $1.90 USD a day. Low income is defined as less than $3.10 per day .

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