Self- reinforcing mechanisms that cause the poor to stay poor are called:
A. poverty traps.
B. societal traps.
C. social networks.
D. social aberrances.
Answer: A
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Which of the following expressions equals GDP?
A) compensation of employees + consumption + depreciation + net investment B) compensation of employees + net interest + rental income + depreciation + corporate profits + proprietors' income + indirect taxes - subsidies C) compensation of employees + net exports + depreciation + corporate profits D) compensation of employees + gross investment + rental income + depreciation + corporate profits + indirect taxes - subsidies
For any given level of output:
A) marginal cost must be greater than average cost. B) average variable cost must be greater than average fixed cost. C) average fixed cost must be greater than average variable cost. D) fixed cost must be greater than variable cost. E) None of the above is necessarily correct.