Higher Rates of Unemployment Are Linked with

question 120

Multiple Choice

Higher rates of unemployment are linked with

• A) greater political stability because the employed tend to be more politically active.
• B) higher crime rates, as the unemployed seek to replace lost income.
• C) lower rates of heart disease, as the unemployed have eliminated job stress.
• D) improvements in overall health, as the unemployed have more leisure time to be physically active.

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Definitions:

Tax Advantages

Financial strategies or aspects of investments that lower the amount of tax payable by taking advantage of beneficial tax policies.

Agency Conflicts

Disagreements between management and shareholders over the best interests of the corporation, often leading to decisions that benefit management at the expense of shareholders.

Income Trusts

Income trusts are investment vehicles that hold income-producing assets and distribute the income earned to the holders, commonly used in sectors like real estate and natural resources.

Free Cash Flow (FCF)

The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.