The Tendency to Help Close Relatives Rather Than Nonrelatives Is

question 71

Multiple Choice

The tendency to help close relatives rather than nonrelatives is much more pronounced

• A) in the United States than in Japan when the need is minimal.
• B) in the United States than in Japan when the need is life-threatening.
• C) in both cultures when the need is life-threatening.
• D) in both cultures when the need is minimal.

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Definitions:

Net Worth

The total value of all assets owned by an individual or organization minus any liabilities or debts.

Assets

Economic resources owned or controlled by an individual or a business, which are expected to provide future benefits.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Distorting Tax

A tax that alters the economic behavior of individuals and businesses from what they would have chosen in the absence of the tax.