Which of the Following Is a Factor That Is Most

question 26

Multiple Choice

Which of the following is a factor that is most likely to discourage people from trying to spend funds from their retirement accounts?

• A) Funds from retirement accounts cannot be invested in stocks and bonds.
• B) The Internal Revenue Service usually adds a 10% penalty for early withdrawals from retirement accounts.
• C) Earnings from retirement accounts are nontaxable only if they are withdrawn at least 25 years after starting the account.
• D) The Securities and Exchange Commission freezes retirement accounts after a single instance of early withdrawal from the accounts.

---

Definitions:

Profit-Maximizing Level

The point at which a company can achieve the highest profit, where marginal revenue equals marginal cost.

Total Revenue

The entire amount of income generated by the sale of goods or services before any expenses are subtracted.

Maximizing Profit

The process of increasing the difference between total revenues and total costs to achieve the highest possible financial gain.

Minimum Wage

The lowest legal hourly pay that employers can offer to workers, set by government policy to protect worker's living standards.