Question
Select all true statements regarding the measures of poverty LIM (low income measure) and MBM (market basket measure) in Canada. 1. If the disposable income
Select all true statements regarding the measures of poverty LIM (low income measure) and MBM (market basket measure) in Canada.
1. If the disposable income of every individual increases, the number of individuals below the poverty line will increase based on the MBM but may not change based on the LIM.
2. The LIM changes when the consumer price index (CPI) changes, but MBM is unaffected by CPI.
3. The LIM changes when the median income changes, but MBM is unaffected by the median.
4. In general, the proportion of poor in a given group is higher when we use LIM than when we use MBM.
5. The proportion of poor for the 65 years and older group is the smallest when the poverty is measured by LIM.
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