James Jenkins, a Key Employee, Has Group-Term Life Insurance Coverage

question 43

True/False

James Jenkins, a key employee, has group-term life insurance coverage of $100,000 paid for by his employer. The plan discriminates in favor of key employees. James must include the actual cost of the $100,000 policy in his income.

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Definitions:

Proposed Tax

A tax suggested by a government or authority but not yet implemented, often subject to legislative approval or public referendum.

Resources Allocation

The process of distributing available resources among various uses or projects in an effective manner.

Median-Voter Model

The theory that under majority rule the median (middle) voter will be in the dominant position to determine the outcome of an election.

Economically Efficient

Refers to a situation where resources are allocated in the most effective way, maximizing production while minimizing waste and inefficiency.