Which of the Following Is an Example of Roundabout Production

question 6

Multiple Choice

Which of the following is an example of roundabout production?

• A)A farmer switches from growing soybeans to growing wheat, getting fewer crops per year as a result.
• B)A farmer switches from growing soybeans to growing wheat, getting more crops per year as a result.
• C)A self-employed dressmaker becomes a wage worker at a factory that makes dresses.
• D)A coal mine is sold by its owners to its workers and run as a cooperative.
• E)A telemarketing firm declares a holiday for two days while a new phone system is installed.

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Definitions:

Charitable Contribution

Donations made to qualified organizations that may be tax-deductible for the donor.

Taxable Income

The amount of income that is subject to tax, after accounting for deductions and exemptions.

FMV

Fair Market Value; an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

Schedule M-1

A tax form used by corporations to reconcile income reported on the company's financial statements with the income reported on the tax return.