Which of the Following Statements Is Not Correct

question 56

Multiple Choice

Which of the following statements is not correct?

• A)Welfare programs may encourage illegitimate births.
• B)The decline in welfare benefits since the 1970s has been associated with a decline in the percentage of children living with a single parent.
• C)Welfare programs may reduce incentives for people to work.
• D)A negative income tax program uses tax revenues collected from high-income families to provide cash subsidies to low-income families.

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Definitions:

Debt-To-Equity Ratio

A financial ratio that measures the degree to which a company is financing its operations through debt versus wholly owned funds.

Equity Multiplier

A financial leverage ratio that measures the proportion of a company’s assets that are financed by its shareholders' equity, indicating the level of debt used to finance assets.

Net Profit Margin

A profitability ratio that shows what percentage of sales has turned into profits after all expenses are deducted.

Gross Margin

The difference between sales revenue and cost of goods sold, often expressed as a percentage, indicating the profitability of a company's core activities.