Distributive Policies Can Be Problematic Because They ______

question 9

Multiple Choice

Distributive policies can be problematic because they ______.

• A) tend to be popular but can lead to wasteful spending
• B) place undue burdens on businesses, making it more difficult for them to make a profit
• C) help only the poor but are paid for by the wealthy
• D) are often extremely controversial and lead to great partisan division during their passage
• E) apply only to the elderly, which makes younger citizens upset that they have to pick up the costs

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Definitions:

Depreciation Expense

An accounting method allocating the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset over time due to wear and tear, usage, or obsolescence.

Translated

Converted from one language to another or, in financial terms, adjusted from one currency into another using the current exchange rate.

Remeasured

The process of adjusting the book value of a foreign subsidiary’s financial statements to reflect current exchange rates or the fair value of assets and liabilities.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.