Explain the limitations of poverty line.
Answers
Answer:
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.
Explanation:
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