Terri-Lynn and Brian Both Work,but Have Only Been Able to Find

question 72

Multiple Choice

Terri-Lynn and Brian both work,but have only been able to find part-time work.However,after they pay their rent for the month, they have nothing left with which to buy food and must use the local food bank.What does their situation illustrate?

• A) homelessness
• B) absolute poverty
• C) relative poverty
• D) at-risk for poverty

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Definitions:

Marginal Costs

The increase in aggregate expenses due to the production of an additional unit of a good or service.

Industry Output

The total production or supply of goods and services produced by a specific industry within a certain period.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Game Theory

The study of behavior in situations of interdependence. Used to explain the behavior of an oligopoly.