Which of the Following Statements Is Correct

question 189

Multiple Choice

Which of the following statements is correct?

• A) The United States has a more equal distribution of income than other developed countries such as Japan and Germany.
• B) The statement "a rising tide lifts all boats" illustrates how economic growth reduces the number of people with income levels below the poverty line.
• C) The economic life cycle explains why people base spending decisions on transitory income.
• D) The libertarian political philosophy follows the maximin criterion.

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Definitions:

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a certain period.

Vesting Period

The period of time before shares are unconditionally owned by an employee in an employee stock option plan.

GAAP

General Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction, including the detailed standards and rules developed by the Financial Accounting Standards Board in the U.S.

Compensation Expense

The total cost that a company recognizes for paying its employees, including wages, salaries, and bonuses.