1. Which of the following statements about poverty lines is false?

The relationship between mean income and the poverty line is linear for a strongly relative poverty line.

An absolute poverty line is unresponsive with respect to mean income.

A strongly relative poverty line is unresponsive with respect to mean income.

The relationship between mean income and the poverty line is non-linear for a weakly relative poverty line.

2. Describe a government program that is paternalistic (a real world example is preferred, but you may invent a realistic one). What is paternalistic about it? What are the costs that will be incurred by the government while implementing this paternalistic program?

3. Discuss two shortcomings of using Gross Domestic Product as the primary measure of a country's economic performance.