When Trying to Determine the Standard of Living in a Given

question 49

True/False

When trying to determine the standard of living in a given country, it is not important to observe its income distribution, because what we are interested in is the income per person in the economy.

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Definitions:

CPA

Certified Public Accountant, a professional designation given to accountants who pass a licensing examination and meet other state requirements.

IRS

The Internal Revenue Service, the U.S. federal agency responsible for tax collection and enforcement of tax laws.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities; essentially the net worth belonging to the owners.

Liabilities

Financial obligations or debts owed by a business to others, which must be paid back in the future.