Which of the Following Is Not Considered a Legitimate Concern

question 100

Multiple Choice

Which of the following is not considered a legitimate concern of a large public debt?

• A) Bankruptcy of the federal government.
• B) Disincentives created by higher taxes.
• C) Crowding-out of private investment.
• D) Increased income inequality.

---

Definitions:

Simple Rate Of Return

A calculation used to evaluate the profitability of an investment, determined by dividing the annual incremental net operating income by the initial investment cost.

Salvage Value

The expected residual worth of an asset upon the conclusion of its effective lifespan.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Incremental Cost Approach

Refers to the analysis of the additional costs that are incurred when making business decisions, focusing on the costs that change with the level of activity.