What is the Haig-Simons definition of income? Are there any practical problems in implementing the Haig-Simons definition?
What will be an ideal response?
The Haig-Simons definition of income is the dollar value of the maximum amount that one can consume over a given period of time without reducing the value of one's wealth. There are some practical problems in implementing it. First, it is not always clear what the value of an asset is until it is sold in a market. Second, if implemented fully, someone might have to sell an asset in order to pay the taxes due on the asset. This might be considered to be unfair on equity grounds.
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The "troika" that helped Greece avoid defaulting on its debt including all of the following EXCEPT:
A) IMF B) European Central Bank C) World Bank D) European Commission
Other things remaining the same, if a nation's price level rises, the demand to hold money:
a. Falls. b. Rises. c. Does not change.
Refer to the above figure. Demand is
A. perfectly elastic. B. unitary elastic. C. perfectly inelastic. D. undetermined without more information.