The Haig-Simons Definition of Income

question 30

Multiple Choice

The Haig-Simons definition of income

• A)is a net change measure.
• B)measures an individual's power to consume.
• C)is measured over a given time.
• D)all of these answer options are correct.

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Definitions:

Net Asset Value

The value per share of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of outstanding shares.

Year-End Assets

The total value of all assets held by an individual or corporation calculated at the end of the fiscal year.

Liabilities

Financial obligations or debts owed by a company or an individual to creditors, typically classified as current (short-term) or long-term.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual funds to determine the per share market value.