Question

2. Understanding the U.S. poverty line The following table shows the U.S. poverty thresholds for 2018 by size of family and number of related children under the age of 18. All figures are in dollars. For example, a family with two adults and three children is considered to be living in poverty if the family's income in 2018 is below $29,967. Related Children under 18 Years One Two Thres Four None Five ited ns Size of Family Unit One person (unrelated individual) Under 65 years 13,064 65 years and over 12,043 Two persons Households under 65 years 16,815 Households 65 years and over 15,178 Three persons 19,642 Four persons 25,900 Five persons 31,234 Six persons 35,925 Seven persons 41,336 Eight persons 46,231 Nine persons or more 55,613 17,308 17,242 20,212 26,324 31,689 36,068 41,594 46,640 55,883 FREE 7. mlimited ited 20,231 25,465 30,718 35,324 40,705 45,800 55,140 25,554 29,967 34,612 40,085 45,064 54,516 29,509 33,553 38,929 44,021 53.491 32,925 37,591 42,696 52,082 Source Poverty Thresholds by Geof Family and Number of Children, 2010, United States Census Bureau https://www.census.gov/data/101 denoncom poverty/60 266

Answer 1

(a)

Beth and Andrew are married and have 4 children under age of 18. So, it is a six person household with two adults and 4 children under age of 18.

Andrew earns $16,000 a year and Beth earns $8,000 a year. So, the total family income is $24,000 a year.

The given schedule shows that a six person household with two adults and 4 children under age of 18 would be considered living in poverty if its annual income is less than $33,553.

The annual income of this household is less than $33,533 per year.

So,

Yes, Andrew and Beth are living in poverty.

(b)

Now, Andrew divorces Beth and lefts the family without paying any alimony or child support. Beth is now have to lookafter the family. So, now it becomes a five person household with one adult and 4 children under age of 18.

Beth now works full time and earns $14,000 a year.

The given schedule shows that a five person household with one adult and 4 children under age of 18 would be considered living in poverty if its annual income is less than $29,509.

The annual income of the household is less than $29,509 per year.

So,

Yes, Beth and her children are living in poverty.

(c)

Beth is now have to lookafter the family. So, now it becomes a five person household with one adult and 4 children under age of 18.

Beth now works full time and earns $14,000 a year. She also get welfare payment of $600 per child. this means she get an extra $2,400 per year. The total family income now is $16,400.

The given schedule shows that a five person household with one adult and 4 children under age of 18 would be considered living in poverty if its annual income is less than $29,509.

The annual income of the household is less than $29,509 per year.

So,

Yes, the Beth family is living in poverty even after receiving welfare.