Pension Funds Do NotI) Accept Contributions from Employers, Which Are

question 68

Multiple Choice

Pension funds do notI) accept contributions from employers, which are tax deductible.II) pay distributions that are taxed as ordinary income.III) pay benefits only from the income component of the fund.IV) accept contributions from employees, which are not tax deductible.

• A) III and IV
• B) II and III
• C) I and II
• D) I, II, and IV
• E) I, II, III, and IV

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Definitions:

Downward Pressure

Describes a situation where factors contribute to the decrease in the price of a product or asset.

Wages

Payments made to workers for their labor, usually based on hours worked or output produced, and a fundamental component of employment contracts.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers, resulting in labor market equilibrium.

Labor

Human mental and physical contributions employed in the manufacturing of goods and services.