One problem with the poverty thresholds is that they do not vary geographically within the contiguous states. The impact of this is that in places with a high cost of living, which of the following is true?
A) More people are probably in poverty but do not meet the official definition.
B) Fewer people are probably in poverty but do not meet the official definition.
C) There is no effect associated with geographic variation.
D) The same numbers of people meet the definition, and they are poorer.

Question

Quizplus · Accepted Answer

The poverty thresholds are set at a national level and do not take into account regional differences in the cost of living. In areas with a higher cost of living, individuals and families may require a higher income in order to meet basic needs, which means that there may be more people who are living in poverty than what the official definition suggests.

One Problem with the Poverty Thresholds Is That They Do