Question

Let's assume that the poverty threshold is $8,980 for an individual and $12,120 for a two-person household. Based on a 40hr work week, how much would you need to earn per hour in order to be above the poverty threshold for
(a) an individual and
(b) a two-person household?

Answer 1

Answer:

a) $4.317 per hour

b) $5.827 per hour

Step-by-step explanation:

Given:

Poverty threshold for an individual = $8,980

Poverty threshold for two-person household = $12,120

Working hours in a week = 40

Now,

the threshold values are for year

thus,

number of working hours in an year = 52 weeks × 40 = 2080 hours

Therefore,

a) Earning per hour in order to be above the poverty threshold for an individual

= $\frac{\textup{Threshold value for individual}}{\textup{Number of working hours}}$

= $\frac{\textup{8,980}}{\textup{2080}}$

= $4.317 per hour

b) Earning per hour in order to be above the poverty threshold for a two person household

= $\frac{\textup{Threshold value for two person household}}{\textup{Number of working hours}}$

= $\frac{\textup{12,120}}{\textup{2080}}$

= $5.827 per hour