Homework 1

# Homework 1 - Homework 1 Name Collaborators? Due in class...

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Homework 1 Name Collaborators? Due in class Monday, October 4 MEASURING POVERTY 1) Imagine there are 10 households in the US in 2009. The characteristics of the families are shown in the table below. None of the families contain people over age 65. Assume the poverty threshold for a family composed of 2 adults and 2 children is \$20,000. (1) Family (2) # of adults (3) # of kids (4) Family Income (5) 2009 poverty threshold p = 0.80 and F = 0.75 (6) 2009 poverty threshold p = 0.80 and F = 0.5 1 1 0 \$11,000 2 1 1 \$3,896 3 1 1 \$12,896 4 1 3 \$30,307 5 2 0 \$25,547 6 2 1 \$16,680 7 2 2 \$11,244 8 2 3 \$40,000 9 3 0 \$25,000 10 3 1 \$27,045 a) Using the NAS recommended equivalence scale, fill in the poverty threshold for each family, in column (5) of the table above. Let p = 0.80 and F = 0.75 b) What is the family poverty rate? c) How much would total income have to increase to lift them all out of poverty? d) What is the depth of poverty?

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## This note was uploaded on 09/07/2011 for the course ECON 375 taught by Professor Staff during the Fall '10 term at Maryland.

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Homework 1 - Homework 1 Name Collaborators? Due in class...

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