Which of the Following Statements Best Serves as a Summary

question 110

Multiple Choice

Which of the following statements best serves as a summary of the other statements?

• A)Low income can mean poor nutrition during the formative years, which can retard mental and physical development
• B)Low income and low productivity may reinforce each other in a cycle of poverty
• C)Low productivity obviously results in low income
• D)Low income means less saving and less saving means less investment in human and physical capital
• E)Poverty can result in less education, less capital formation, a poor diet, and little health care

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Definitions:

Marginal Cost

The rise in expense incurred from manufacturing an extra unit of a product or service.

Shutdown Point

The level of operations at which a company does not benefit from continuing operations or producing any output due to high variable costs.

Output

The total amount of goods or services produced by an economic system or entity within a given period.

Peak Efficiency

Refers to the highest level of operational productivity or performance a company or economy can achieve under ideal conditions.