"Providing welfare benefits" government policies pursues the economic goal of equity.
<u>Option:</u> B
<u>Explanation:</u>
To ensure economic stability the government offers welfare benefits for the vulnerables. Welfare benefits are federal programs supported by the government for the families and individuals who need such assistance. Welfare benefits include reimbursement for unemployment, food stamps and support for health care. There seem to be six significant welfare programs in the United States. These include 
- Temporary Assistance for Needy Families (TANF),
- Medicare, 
- Supplemental Nutrition Assistance Program (SNAP or food stamps), 
- Supplemental Security Income (SSI), 
- Earned Income Tax Credit (EITC), and 
- Housing Assistance.
 
        
                    
             
        
        
        
Answer:
a. in order to calculate this we must assume that the economy entered a recession:
degree of operating leverage = [($20 - $70)/$70] / [($260 - $520)/$520] = -0.7143 / -0.5 = 1.43
b. $14 million
Explanation:
strong economy:
total sales $520 million
<u>variable costs $420 million</u>
gross profit $100 million
<u>fixed costs $30 million</u>
EBIT $70 million
<u>income taxes $21 million</u>
net income $49 million
weak economy:
total sales $260 million
<u>variable costs $210 million</u>
gross profit $50 million
<u>fixed costs $30 million</u>
EBIT $20 million
<u>income taxes $6 million</u>
net income $14 million
 
        
             
        
        
        
Answer:
The bond that should pay the highest interest rate is:
d. a bond issued by a new restaurant chain.
Explanation:
This is based on the fact that the new restaurant chain is untested, has higher risk profile and the bondholders are assuming higher risks, and the bond cannot be compared to the bonds issued by the US government, New York State, and General Motors, in that order.  The new restaurant chain will be offering a higher rate of return than others because it is new to the bond market and would like to attract potential bond investors.   Without the higher rate, therefore, it will not be successful in the bond issuance.