Practice question · Numerical answer
A country’s median equivalised disposable income is 25,000 euros. What is its at-risk-of-poverty threshold in euros, on the European Union definition?
Hints
- The threshold is a fixed fraction of the median, not of the mean.
- Sixty per cent of twenty-five thousand.
Show the answer
15000
Why
15,000 euros. The choice of 60 per cent is a convention rather than a discovery, and Eurostat also publishes lines at 40, 50 and 70 per cent for exactly that reason. Reporting a poverty rate without naming the fraction is reporting half a statistic.
Practise Inequality, Poverty and Social Exclusion
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