Which Statement About the Maximin Principle Is Correct

question 54

Multiple Choice

Which statement about the maximin principle is correct?

• A) Doing well by the better-off group is more important than improving the lot of worst-off groups.
• B) Doing well by the worst-off group is more important than improving the lot of any other group.
• C) Doing well by both the better-off group and worst-off group is equally important.
• D) Doing well by neither the better-off group nor worst-off group is important.

Ability to use financial tables or financial calculators to find present value (PV), future value (FV), present value of an annuity (PVA), and future value of an annuity (FVA).

Understand the impact of changing interest rates and time periods on future and present value calculations.

Apply understanding of future value and present value concepts to make informed financial decisions regarding loans, savings, and investments.

Understand the concept of compounding interest semiannually, quarterly, and in other non-annual periods.

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Definitions:

Common Stock Account

An equity account that represents the ownership interest of shareholders in a corporation, recorded at par value or issued price.

Stock Dividend

A dividend payment made in the form of additional shares of the issuing company, rather than as cash.

Additional Paid-In Capital

The excess amount paid by investors over the par value of the stock during the issuance of shares.