Sharisma Suffered a Serious Stroke and Was Admitted to a Nursing

question 68

Multiple Choice

Sharisma suffered a serious stroke and was admitted to a nursing home for 140 days.Nursing home charges,including physician fees and other related expenses were $63,000.Under Sharisma's long-term care insurance contract,she received reimbursements of $56,000.How much of the $56,000 reimbursement must be included in Sharisma's gross income in 2019?

• A)$0
• B)$4,200
• C)$56,000
• D)$7,000

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Definitions:

Maximizing

Seeking to make as large as possible; in economics, often involves actions like profit maximization or utility maximization.

Daisy

A common name for a variety of flowering plants in the family Asteraceae, known for their simple yet appealing appearance.

Total Utility

The complete gratification or advantage gained from the consumption of a specific amount of a product or service.

Marginal Utility

The extra pleasure or benefit a consumer gets from consuming an additional unit of a product or service.