Explain the limitations of poverty line ?
Answers
Answer:
Explanation:
Historically, poverty and well-being in the US have been assessed using ... standards for reasons not explained by current income (e.g., Beverly, 1999; ... a threshold that has not been adequately updated to reflect changes
Historically, poverty and well-being in the US have been assessed using income-based measures (i.e., by applying the official poverty thresholds to income data reported in surveys). In theory, income-based measures capture a household's ability to purchase the goods and services that it needs. That is, income is a measure of a household's resources that can be used to meet its needs, allowing for differences in individual tastes and preferences (income does not prejudge what expenditures households should make). Domestic income-based poverty measures also benefit from the fact that they draw upon nationally-representative surveys and administrative data systems that regularly collect income data. This allows for longitudinal comparisons of income trends over time.