How can absolute poverty be eliminated? How can relative poverty be eliminated? Does the elimination of one lead to the elimination of the other? Explain
What will be an ideal response?
Absolute poverty can be eliminated by economic growth that lifts all families above the poverty level. Relative poverty can be eliminated by a perfectly equal distribution of income. Eliminating one does not eliminate the other. If incomes rise so that no one is below the poverty level, but higher incomes rise faster, relative poverty may increase. If everyone earns a subsistence income, there is no relative poverty but everyone experiences absolute poverty.
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Marginal profit is the addition to a firm's total profit from a
a. $1 change in its price. b. one-unit change in its output. c. reduction in total cost. d. reduction in marginal cost.
In-kind transfers
a. are cash payments given to the poor from the government. b. are available to citizens of all income levels, but usually only sought by the poor. c. are non-monetary items given to the poor. d. include food stamps, but not housing vouchers or medical services.
An increase in the marginal propensity to save from .3 to .4 will cause
A) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a smaller effect on output. B) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a larger effect on output. C) the ZZ line to become flatter and a given change in autonomous consumption (c0 )) to have a smaller effect on output. D) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a larger effect on output.
Nonresidential structures, durable equipment, residential structures, and inventories are the major categories of
A. human capital. B. social capital. C. intangible capital. D. tangible capital.