Use the Following to Answer Question(s): Income Distribution in the United

question 52

Multiple Choice

Use the following to answer question(s) : Income Distribution in the United States

-Relative poverty might be defined based on the:

• A) ratio of food expenditures to housing expenditures.
• B) ratio of housing expenditures to total expenditures.
• C) relative proportion of income spent on food.
• D) upper limit of income in the lowest one-fifth of the income distribution.

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Definitions:

MC

Marginal Cost, which refers to the increase or decrease in the cost of producing one additional unit of a good or service.

ATC

stands for Average Total Cost, which is the sum of all production costs divided by the quantity of output produced; it combines average fixed and variable costs.

MR

Stands for Marginal Revenue, which is the additional income received from selling one more unit of a product or service.

Short Run

A time period in economics during which at least one input is fixed, limiting the ability of the economy or firm to adjust to changes in demand or supply.