Setting a specific income level and then defining a person (or household) as poor if his or her (or its) income falls below that income level is called a (n) : Select one: a. means-tested test. b. relative income test. c. absolute income test. d. nominal income test.

Question

Business

Guest

14 April, 10:27

Setting a specific income level and then defining a person (or household) as poor if his or her (or its) income falls below that income level is called a (n) : Select one: a. means-tested test. b. relative income test. c. absolute income test. d. nominal income test.

+4

Answers (1)

Know the Answer?

Hugh Benjamin · Answer 1

Answer: Option (c) is correct.

Explanation:

Correct: Absolute income test

Absolute income test is a measure of poverty in a country. In absolute income test, there is a setting of income level that is the benchmark for the poverty. This means that if a person's income falls above this income level then he is not considered as poor whereas if a person's income falls below this income level then he regarded as poor.