Despite Overall Increased Levels of Income and Wealth in the United

question 4

Essay

Despite overall increased levels of income and wealth in the United States during the past four decades, poverty continues to be a societal issue. According to your textbook, what are two key theories that developed in the social sciences to identify the roots of poverty in the United States? How do these two theories differ and what elements might they have in common? What is meant by poverty as pathology versus poverty as a structural economic problem? Which theory do you find most convincing for identifying the root causes of poverty in the United States, and why? Do you think additional theories are needed to more fully address the underlying causes of poverty in the country and globally? What do you think is the appropriate role of the government in addressing the roots of poverty? What do you think is the appropriate role of the individual in overcoming poverty? Do you think poverty can be eradicated in the future? Why or why not?

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into their production or delivery.

Cost Driver

A factor that influences or contributes to the expense incurred by a business activity. It is the root cause of why a particular cost occurs.

Conventional CVP Analysis

A method used in managerial accounting to understand the relationship between costs, production volume, and profits. It stands for Cost-Volume-Profit Analysis.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.