One cost-of-living indicator available on the Internet shows that a salary of $40,000 in Santa Barbara, California, is equivalent to $14,000 in Wichita, Kansas. This is primarily because of housing, which is much less expensive in Wichita. What does this difference say about how the federal government calculates poverty?
A) It highlights something the poverty line shows us: that poverty is connected to the local cost of living, reflected in the differences in rates of poverty in different parts of the country.
B) It shows that the poverty line is more or less accurate, because it has been recalibrated to take into account housing costs.
C) It doesn't really relate to the way the government calculates the poverty line, because the cost of food is the biggest item in most families' budgets.
D) It points to a flaw in the way the government calculates the poverty line, as the standard is uniformly applied without regard to regional differences.
E) It points to a flaw in the way the government calculates the poverty line, as it proves there are far more poor people in the Midwest.

Question

Quizplus · Accepted Answer

The difference in cost of living between Santa Barbara, California, and Wichita, Kansas, particularly in housing costs, illustrates a flaw in the federal government's calculation of the poverty line. The poverty line is applied uniformly across the United States without accounting for significant regional differences in the cost of living.

One Cost-Of-Living Indicator Available on the Internet Shows That a Salary