A Government Is Viewed as Legitimate When ___________

question 59

Multiple Choice

A government is viewed as legitimate when ___________.

• A) there is no opposition to its policies
• B) all officials are elected with a majority of the popular vote
• C) the affected people recognize the government and allow it to exercise control over them
• D) it attempts to make all citizens happy
• E) it takes the form of a democracy

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Definitions:

Diluted Earnings

Earnings per share (EPS) calculated using the maximum potential number of shares that could be outstanding if all sources of conversion, such as convertible bonds or employee stock options, are exercised.

Marginal Income Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the rate at which the last dollar of your income is taxed.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some numbers than others.

Basic Earnings

The net income earned by a company divided by the number of outstanding shares, providing a measure of the company’s profitability on a per-share basis.