Which of the Following Government Programs Is Most Likely to Reduce

question 140

Multiple Choice

Which of the following government programs is most likely to reduce relative poverty?

• A) promoting economic growth
• B) providing university scholarships to the country's smartest students
• C) transferring income from the richest to the poorest citizens
• D) providing incentives to increase the level of capital formation

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Definitions:

Straight-line Depreciation

A technique for distributing the expense of a physical asset uniformly throughout its estimated useful duration.

Annual Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue in a fiscal year.

Tax Rate

The segment of an individual's or corporate's earnings or profits that is taxed.

Net Working Capital

Net working capital is a measure of a company's liquidity, calculated as the difference between its current assets and current liabilities.