Amy's Employer Provides Her with Several Fringe Benefits

question 61

Multiple Choice

Amy's employer provides her with several fringe benefits.Which of the following are included in her taxable income?

• A)Christmas bonus check
• B)group term life insurance premium paid by employer for $40,000 coverage for Amy
• C)employee discount
• D)employer's contribution to retirement plans on Amy's behalf

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Definitions:

Satisfaction Levels

A measure of how goods or services meet or surpass customers' expectations.

Indifference Curve

A graph that shows a combination of two goods that give a consumer equal satisfaction and utility, representing their preferences.

Equal Satisfaction

A principle in consumer choice theory that suggests consumers allocate their resources to maximize satisfaction or utility.

Indifference

A state where a consumer has no preference between two or more choices.