Workers Whose Skills Become Obsolete as a Result of Technological

question 211

Multiple Choice

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

• A)natural ability.
• B)geographic location of employment.
• C)chance.
• D)work effort.

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Definitions:

Passive Activity

Economic activities in which the taxpayer does not materially participate, often associated with rental properties or certain business investments.

Ordinary Loss

A loss incurred in the normal operation of a business, which can be used to reduce other taxable income on an owner's tax return.

Itemized Deductions

Expenses that taxpayers can subtract from their taxable income, detailed on Schedule A of the tax return.

AGI

Adjusted Gross Income, a measure of income calculated from your gross income and used to determine how much of your income is taxable.