A Savings-Surplus Unit Is One

question 28

Multiple Choice

A savings-surplus unit is one:

• A)whose revenue-earning capacity exceeds its expenditure.
• B)whose expenditure exceeds its revenue-earning capacity.
• C)that needs to borrow funds from a direct source.
• D)that is normally a finance company.

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Definitions:

Vertical Equity

A principle in taxation stating that taxpayers with a higher ability to pay should contribute more in taxes than those with a lesser ability to pay.

Flow Measure

A quantitative assessment that represents movement of items over time, often used in economics to track variables like income.

Consumption

The consumption of products and services by individuals in a household.

Impossibility Theorem

A proposition demonstrated by Kenneth Arrow showing that no system of aggregating individual preferences into social decisions will always yield consistent, nonarbitrary results.