What Is the Shadow Welfare State

question 87

Multiple Choice

What is the shadow welfare state?

• A)the welfare that is distributed by local governments and special districts
• B)tax breaks-credits,deductions,and preferential tax rates that subsidize social welfare
• C)the welfare payments that the government is committed to paying in the future
• D)private charities that have filled the gap left by reductions in government spending

---

Definitions:

Profitability Index

A ratio that compares the present value of future cash flows generated by an investment to the investment's initial cost, indicating its relative profitability.

Required Rate Of Return

The minimum annual percentage return an investor expects to achieve from an investment.

Discounted Payback

A capital budgeting method that calculates the length of time it takes to break even from an investment based on its discounted cash flows.

Profitability Index

A financial tool that calculates the ratio of the present value of future cash flows generated by an investment to the investment’s initial cost, used to assess project attractiveness.