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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If a monopolist sets her output such that marginal revenue, marginal cost and average total cost are equal, economic profit must be:
A) negative. B) positive. C) zero. D) indeterminate from the given information.
When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information b. decisions are being moved from those with stronger incentives to make good decisions c. decisions are being moved from those with more of the relevant information d. decisions are being moved from those with weaker incentives to make good decisions