Question

If policy is designed to reduce the number of families living below the poverty line, you...

If policy is designed to reduce the number of families living below the poverty line, you might expect that...

a.policy makers are more concerned with effi ciency than with equity.

b.that policy makers believe in the compensation principle.

c.a politician to attempt to raise the poverty line.

d.that people just below the poverty line are a more likely policy target than the very poor.

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Answer #1

If policies are targeting people below the poverty line it means that the the policy makers believe in compensation principle. i.e. it may lead to higher taxes to the rich and more benefits for the poor.

The answer is "B".

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