Economists Generally Agree That in Reducing Poverty, Policies Should Be

question 25

Multiple Choice

Economists generally agree that in reducing poverty, policies should be sought that do the

• A)greatest good for total production.
• B)least harm to work incentives.
• C)most good for the poor.
• D)least harm to equality of income.

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Definitions:

Fixed Cost

A cost that does not change with the level of output or production, such as rent or salaries.

Short Run

A period in economics during which at least one input, such as plant size, is fixed and cannot be changed.

Physical Capital

Tangible assets such as buildings, machinery, and equipment used in the production of goods and services.

Variable Cost

Costs that vary directly with the level of production, such as raw materials, labor, and energy used in the manufacturing process.