Which of the following statements about poverty rates is true?

• A. Poverty rates are always lower in rural areas compared to urban areas.
• B. Poverty rates have remained constant over the past fifty years in all developed countries.
• C. Poverty rates are unaffected by changes in government policy.
• D. Poverty rates are typically higher among children than among the elderly in most countries.

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of poverty rates, which measure the percentage of a population living below the poverty line, often defined by income thresholds or consumption levels.
2. Step 2: Analyze the first statement: "Poverty rates are always lower in rural areas compared to urban areas." Consider empirical evidence that often shows rural poverty can be higher due to limited access to services and employment, so this statement is generally false.
3. Step 3: Evaluate the second statement: "Poverty rates have remained constant over the past fifty years in all developed countries." Reflect on historical data indicating that poverty rates fluctuate due to economic cycles, policy changes, and social programs, making this statement inaccurate.
4. Step 4: Consider the third statement: "Poverty rates are unaffected by changes in government policy." Recognize that government policies such as social welfare, taxation, and minimum wage laws significantly influence poverty rates, so this statement is false.
5. Step 5: Review the fourth statement: "Poverty rates are typically higher among children than among the elderly in most countries." Understand that children often face higher poverty risks due to dependency and family income dynamics, making this statement true and the correct choice.