The Theory That Best Explains How Poverty Is Created Within

question 66

Multiple Choice

The theory that best explains how poverty is created within a society is

• A) functional theory.
• B) conflict theory.
• C) normative theory.
• D) interactionism.

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Definitions:

Production Level

The quantity of goods or services that a company is capable of producing over a given period of time.

Marginal Costs

The amount spent on producing an extra unit of a product or service.

Fixed Costs

Costs that do not vary with the level of output or sales in the short term, such as rent or salaries.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded, and thus should not factor into future decision-making processes.