Which of the following best defines poverty and identifies a characteristic that affects it?

• A. Poverty is the result of government intervention in markets, and only market prices affect poverty.
• B. Poverty is the condition of lacking sufficient income to meet basic needs, and education level is a characteristic that affects poverty.
• C. Poverty is the inability to purchase luxury goods, and climate is the only factor that affects poverty.
• D. Poverty is defined as having no access to any goods or services, and only age affects poverty.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the definition of poverty in microeconomics. Poverty generally refers to the condition where individuals or households lack sufficient income to meet their basic needs such as food, shelter, and clothing.
2. Step 2: Identify characteristics or factors that influence poverty. These can include education level, employment opportunities, health, age, and social policies, among others.
3. Step 3: Evaluate each given option by comparing it to the accepted definition of poverty and the known factors affecting it. For example, poverty is not simply about inability to buy luxury goods or solely caused by government intervention.
4. Step 4: Recognize that education level is a significant characteristic affecting poverty because it influences earning potential and access to better jobs, which in turn affects income and ability to meet basic needs.
5. Step 5: Conclude that the best definition and characteristic pairing is: 'Poverty is the condition of lacking sufficient income to meet basic needs, and education level is a characteristic that affects poverty.'