What is the Haig-Simons definition of income? Are there any ...

[skymedlock]

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?

Question 2

The appropriate contract for the development of a one-of-a-kind submarine employing a considerable amount of new technology is a fixed fee contract.
 
  a. True b. False

[skipfourms123]

Answer to Question 1

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.

Answer to Question 2

b

[skymedlock]

Wow, this really help

[epscape]

Thanks for the timely response, appreciate it