Which of the Following Is Not One of the Concerns

question 72

Multiple Choice

Which of the following is not one of the concerns of some policymakers and economists that the increase in the share of income earned by the 1 per cent is damaging to the country?

• A)The higher incomes of the 1 per cent may give them disproportionate political influence through campaign contributions.
• B)Countries with high levels of income inequality have lower growth rates than do countries with more equal distributions of income.
• C)Further increases in marginal tax rates may reduce work, saving, and investment, thereby reducing economic growth.
• D)Rising income inequality can lead to political unrest.

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Definitions:

Share Options

Rights granted by a company to its employees or executives that allow them to buy shares of the company at a specified price for a specified period.

Performance Hurdle

A benchmark or specific target set that must be achieved before certain rewards, such as bonuses or stock options, are granted.

Repriced Option

An option whose terms, specifically the strike price, have been adjusted, typically to make the options more favorable for the holder following declines in the market price of the underlying asset.