What Is the Essence of the Equalization Principle Enshrined in the Constitution

question 8

Multiple Choice

What is the essence of the equalization principle enshrined in the Constitution Act, 1982?

• A) the federal government can spend on anything it wants, regardless of jurisdiction
• B) all provincial governments should be able to provide similar levels of public service without resorting to dramatically higher taxes than their neighbours
• C) when a provincial government falls upon hard times, other provincial governments should contribute funds directly to their recovery
• D) individual Canadians should be protected from undue hardship as the result of losing a job

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Definitions:

Note Payable

A formal written agreement to pay a specified amount of money, including interest, by a certain date, recorded as a liability on the balance sheet.

Original Principal

The initial amount of debt or loan before any interest or fees are added; it is the base amount on which interest calculations are made.

Accrued Interest

Interest earned or owed that has not yet been paid or received.

Discounting

The process of determining the present value of a future amount of money or stream of cash flows given a specific rate.