Many People Argue in Favor of the U

question 183

Multiple Choice

Many people argue in favor of the U.S. government sending money to the poorest Americans. Such individuals are rarely as enthusiastic about sending money to the poorest people worldwide, many of whom are much poorer than the poorest Americans. Of the topics discussed in Cowen and Tabarrok's chapter on ethics, which one is closest to this apparent paradox?

• A) immigration
• B) income distribution
• C) cultural goods
• D) meddlesome preferences

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Definitions:

Partial Equity Method

An accounting approach akin to the equity method but differs by not recognizing all of the investee’s earnings, only the dividends received as income.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor’s share of the investee’s net income or loss.

Initial Value Method

An accounting approach that records investments at their original purchase cost, without adjusting for changes in market value.

Partial Equity Method

An accounting technique used for investments where the investor has significant influence but does not fully control the investee, recognizing income proportionate to the level of ownership.