Author Question: In the United States, there are a number of programs that provide goods and services, such as food, ... (Read 88 times)

jerry coleman · **on:** Jun 30, 2018

In the United States, there are a number of programs that provide goods and services, such as food, medical care, and housing, to the poor. How could income standards be changed, in light of these programs, to better reflect absolute poverty?
a. The income standards should not change because these programs provide goods and services, not money.
b. The income standards should be increased, since it costs money to provide these goods and services.
c. The income standards should be increased, because these programs will affect the relative measure of poverty.
d. The income standards should be decreased, since program recipients require less income to meet a minimum standard of living.

Question 2

A loan used as an investment turns out to be profitable if the sale price of its output covers the _____ of all other inputs and interest on the funds loaned.
a. internal costs
b. marginal cost
c. opportunity cost
d. average cost