-In the Figure Above, Gap's Economic _______ Is _______

question 3

Multiple Choice

-In the figure above, Gap's economic _______ is _______ .

• A) loss; $8,000
• B) profit; $13,000
• C) loss; $13,000
• D) profit; $7,200

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Definitions:

IRA

Individual Retirement Account, a savings account with tax advantages that individuals can use to save and invest long-term.

AGI

Adjusted Gross Income represents a calculation derived from your total earnings, used to ascertain the taxable portion of your income.

Deductible IRA Contribution

An investment in an Individual Retirement Account that can be deducted from gross income for tax purposes, thus reducing taxable income.

Pension Plan

A type of retirement plan typically sponsored by employers that provides monthly income to employees after they retire.