Community-Wide Poverty

question 2

Multiple Choice

Community-wide poverty:

• A) is nonexistent in the developed world.
• B) creates problems beyond those faced by poor individuals living in wealthier communities.
• C) only creates problems in less wealthy countries.
• D) None of these is true.

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Definitions:

Annual Deficit

The shortfall in a government's income compared to its spending in a given fiscal year.

George Bush

Refers to either George H.W. Bush, the 41st President of the United States (1989-1993), or his son George W. Bush, the 43rd President of the United States (2001-2009), each having made lasting impacts on American and international politics.

Crowding-in

An economic phenomenon where increased government spending leads to higher private sector investment.

Crowding-out

A situation where increased public sector spending reduces the amount of available funds for private sector investments.