Brain Drain Has Occurred in Many Socialistic Nations Because

question 162

Multiple Choice

Brain drain has occurred in many socialistic nations because

• A) socialism encourages an unequal distribution of income, leaving many without medical and social services.
• B) the government does little to protect the natural environment.
• C) workers tend to have to work longer hours and receive fewer benefits under socialism.
• D) tax rates on well-respected professionals such as doctors tend to be very high.

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Definitions:

Debt-Equity Ratio

A measure used to evaluate a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

M&M II

The second proposition by Modigliani and Miller which states that in the absence of taxes, bankruptcy costs, and asymmetric information, and in an efficient market, the value of a levered firm is equal to the value of an unlevered firm plus the present value of the tax shields due to debt.

Pre-Tax Cost

Pre-Tax Cost refers to the expense or cost a company incurs before any taxes are deducted.

Debt-Equity Ratio

A financial ratio indicating the relative proportion of shareholder's equity and debt used to finance a company's assets.