Poverty in Contemporary America Can Be Explained in Part by

question 32

Multiple Choice

Poverty in contemporary America can be explained in part by

• A)differences in training across individuals.
• B)growth of technology and the increasing importance of education.
• C)differences in economic environment.
• D)differences in ability across individuals.
• E)all of the above.

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Definitions:

Industry Entry and Exit

The process by which new competitors enter and existing firms exit a market or industry, often influenced by barriers to entry, market competition, and profitability.

Long-Run Profits

Long-run profits are the earnings a firm expects to achieve over a period during which all inputs, including capital, can be fully adjusted.

Elastic

Describes a situation where the demand or supply for a good or service significantly changes in response to changes in price.

Pure Competition

A market structure characterized by a large number of buyers and sellers, uniform products, and free entry and exit, leading to price taking behaviour.