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Poverty and Resource Distribution Quick Check
2 of 52 of 5 Items
Question
The Supplemental Poverty Measure differs from the official poverty measure in a number of ways. What is one particular difference between the two?(1 point)
Responses

The official poverty measure includes nonmonetary benefits like housing subsidies and tax credits, while the Supplemental Poverty Measure does not.
The official poverty measure includes nonmonetary benefits like housing subsidies and tax credits, while the Supplemental Poverty Measure does not.

The Supplemental Poverty Measure includes nonmonetary benefits like housing subsidies and tax credits, while the official poverty measure does not.
The Supplemental Poverty Measure includes nonmonetary benefits like housing subsidies and tax credits, while the official poverty measure does not.

The official poverty measure includes cash incomes, while the Supplemental Poverty Measure does not.
The official poverty measure includes cash incomes, while the Supplemental Poverty Measure does not.

The Supplemental Poverty Measure includes cash income, while the official poverty measure does not.

1 answer

The correct response is:

The Supplemental Poverty Measure includes nonmonetary benefits like housing subsidies and tax credits, while the official poverty measure does not.

This statement accurately describes a key difference between the two measures of poverty. The Supplemental Poverty Measure (SPM) takes into account additional resources and expenses, such as noncash benefits, whereas the official poverty measure is primarily based on cash income alone.