A Binary Variable (Also Called a Dichotomous Variable or Dummy

question 76

Multiple Choice

A binary variable (also called a dichotomous variable or dummy variable) has:

• A)only two possible values.
• B)continuous scale values.
• C)rounded data values.
• D)ordinal or interval values.

Recognize the complexity in measuring income inequality and poverty rates.

Comprehend various anti-poverty strategies and welfare reforms, including their potential disadvantages, like work disincentives.

Realize the economic reasoning behind taxation and subsidies through mathematical examples.

Understand the role of utilitarian arguments in shaping public policy towards income redistribution.

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Definitions:

Notes Payable

A financial obligation or loan documented by a written promissory note, specifying the terms of repayment.

Mortgage Payable

A long-term liability account that records the amount owed on a property mortgage.

Social Security Tax

Taxes collected to fund the Social Security program, providing benefits for retirees, the disabled, and children of deceased workers.

Federal Income Tax

A tax levied by the United States Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.