Needs-Tested Spending

question 23

Multiple Choice

Needs-tested spending

• A)is directing government spending and taxes to states that need the most help.
• B)is giving tax cuts to wealthy people so they will increase their spending.
• C)cannot be changed without changes in the laws.
• D)includes homeland defense spending.
• E)includes transfer payments such as food stamps and unemployment benefits.

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Definitions:

Retained Earnings

Refers to the portion of net income left over for the business after it has paid out dividends to its shareholders.

Surplus Cash

Excess funds that a company has after covering all its operational expenses, investments, and financial obligations.

Dividends

Distributions to shareholders from a corporation, often sourced from the entity's earnings.

Stock Dividend

A form of dividend payment made by a corporation to its shareholders in the form of additional shares, rather than cash.