Which Explains the Difference Between Relative Poverty and Absolute Poverty

question 9

Multiple Choice

Which explains the difference between relative poverty and absolute poverty?

• A)Absolute poverty is easier to overcome than relative poverty because there are more programs for assistance.
• B)Relative poverty is common in countries such as India and Africa,and absolute poverty is the focus in countries such as the United States.
• C)Relative poverty is comparative,and absolute poverty is a complete lack of basic resources.
• D)Purchasing power is used to determine relative poverty,and the poverty threshold is used to determine absolute poverty.

---

Definitions:

ATC

Stands for Average Total Cost, which is the total cost of production (fixed plus variable costs) divided by the number of units produced.

Economic Profits

A reiteration emphasizing the calculation that includes total revenues minus total costs, where total costs consider both the explicit and implicit costs.

Competitive Price-searcher Market

A market structure where firms have some degree of market power, enabling them to set prices above marginal cost, but must consider competitor prices to attract consumers.

Product Diversity

The variance in products and services offered by companies or available in a market, aiming to cater to different consumer preferences.