Brad Suffers from Congestive Heart Failure and Has Been Admitted

question 31

Multiple Choice

Brad suffers from congestive heart failure and has been admitted to a nursing home where he is expected to spend the remainder of his life.His doctor has certified him as chronically ill.Brad receives $320 per day from his life insurance policy for 100 days ($32,000) as accelerated death benefits.Brad's nursing home care costs $300 per day ($30,000 for the 100 days of care) .Brad will be allowed to exclude

• A)$0.
• B)$30,000.
• C)$32,000.
• D)$2,000.

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Definitions:

Competitive Employer

An employer who maintains a strong position within the labor market by offering compelling wages, benefits, or working conditions to attract and retain employees.

Inputs

Resources used in the production of goods and services, including labor, capital, materials, and technology.

Marginal Revenue Product

The extra income a company acquires by using an additional unit of input, like labor or capital.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource, such as labor or capital, holding all other inputs constant.