A Transfer Payment for Which Recipients Qualify on the Basis

question 95

Multiple Choice

A transfer payment for which recipients qualify on the basis of income is:

• A) externality tested.
• B) nonexternality tested.
• C) means-tested.
• D) non-means-tested.

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Definitions:

Quick Assets

Liquid assets that can be rapidly converted into cash, excluding inventory, such as cash, marketable securities, and receivables.

Leverage

The use of borrowed capital or financial instruments to increase the potential return of an investment or project.

Debt Financing

The raising of funds through borrowing, either by issuing bonds or taking out loans, which creates a liability to be repaid over time.

Return on Common Stockholders' Equity

A measure of profitability that indicates how much profit a company generates with the money shareholders have invested, expressed as a percentage.