Use the Following to Answer Question(s): Income Distribution in the United

question 64

Multiple Choice

Use the following to answer question(s) : Income Distribution in the United States

-Which of the following statements is true regarding welfare reform in 1996?

• A) It was designed to move people out of welfare and into work.
• B) It extended the years individuals could receive welfare.
• C) It changed the poverty rate determination to include the value of noncash benefits.
• D) It changed the entire process for calculating the poverty rate.

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Definitions:

Initial Outlays

The initial investments or costs incurred when starting a project, business, or investment.

Net Present Value

A financial measure that assesses an investment's profitability by calculating the difference between the present value of cash inflows and the present value of cash outflows throughout a certain timeframe.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Cost of Capital

The rate of return a company must pay investors to finance its assets, often used as a benchmark to evaluate the profitability of investments.