Jed Spends 32 Hours a Week, 50 Weeks a Year

question 54

Multiple Choice

Jed spends 32 hours a week, 50 weeks a year, operating a bicycle rental store that he owns at a resort community. He also owns a music store in another city that is operated by a full-time employee. He elects not to group them together as a single activity under the "appropriate economic unit" standard. Jed spends 40 hours per year working at the music store.

• A) Neither store is a passive activity.
• B) Both stores are passive activities.
• C) Only the bicycle rental store is a passive activity.
• D) Only the music store is a passive activity.
• E) None of the above.

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Definitions:

Poverty Line

A defined income level below which an individual or family is considered to be living in poverty, based on the cost of living and basic needs.

Millionaires

Millionaires are individuals whose net worth or wealth is equal to or exceeds one million units of currency.

Inherited

Assets or properties received from ancestors or previous generations through a legal process called inheritance.

Utilitarian Justification

A moral philosophy that advocates for actions that maximize happiness and well-being for the majority of a population.