2007-05-07 04:15:08 · 4 answers · asked by Jay baby 1 in Social Science ➔ Economics
luxury good in economics refers to goods that are brought more the higher the income of the people are.
even if proverty were a tangible good, it decreases with income. it is an inferior good, if you were to really argue it out.
2007-05-07 07:00:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Poverty is relative so the higher the average income is in a country, the higher the poverty income level is set. Therefore as a country's income increase the more the government spends on poverty programs.
2007-05-07 14:28:57 · answer #2 · answered by meg 7 · 0⤊ 0⤋
It may be beacuse of that point of view:
The cost of poverty is much more than the cost of wealth.
poverty means no production, no economical activity, no tax, but still need for expenditure for health, food, shelter, etc. So some of the income will go there where there is no return.
Somebody said something like that: "I am not so rich to buy cheap shoes."
2007-05-07 19:49:33 · answer #3 · answered by Bay Pipo 2 · 0⤊ 0⤋
That is nonsensical. Poverty is not a good. Goods are things like houses, cars, gasoline, steaks, etc.
2007-05-07 13:29:34 · answer #4 · answered by helper 7 · 0⤊ 0⤋