Self- Employed Individuals May Claim, as a Deduction for Adjusted

question 494

Multiple Choice

Self- employed individuals may claim, as a deduction for adjusted gross income, 50 percent of their

• A) traditional IRA contributions.
• B) self- employment tax.
• C) health insurance premiums.
• D) disability insurance premiums.

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Definitions:

Opportunity Costs

The disclaim of potential advantage from other options when a particular choice is favored.

Exercising Regularly

The routine practice of engaging in physical activity to maintain or improve health and fitness.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors using the same amount of resources.

Comparative Advantage

The ability of a country or firm to produce a good or service at a lower opportunity cost than its competitors.