Suppose that the following data for a two-person family: 1. Official poverty rate 15.0% 16.0%
2. Official poverty line $10,000
3. Relative poverty line $10,000
4. Subjective poverty line $10,000
5. Median family income $20,000 $21,000 (current dollars)
6. Consumer Price Index (CPI) 100 110
Compute the following:
A. The official poverty line for a family of 2 in 1996.
B. The relative poverty line for a family of 2 in 1996.
C. The subjective poverty line in 1996 if elasticity of the subjective poverty line with respect to median family income is 0.6.

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)