Thompson Raised 80 Acres of Corn,most of Which He Used

question 30

Multiple Choice

Thompson raised 80 acres of corn,most of which he used to feed his own cattle.He locally sold what he did not use.Based on the Supreme Court's ruling in Wickard v.Filburn,

• A)Congress has no authority over Thompson's activity based on the negative aspect of the Commerce Clause.
• B)Congress may regulate Thompson's farming activity because it has a substantial economic effect on interstate commerce.
• C)only Thompson's local government can regulate his farming activity.
• D)only Thompson's state and local governments can regulate his farming activity.

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Definitions:

Multiple-Step

An income statement format that separates operating revenues and expenses from non-operating ones to calculate net income.

Operating Expenses

Costs associated with the daily operations of a business, excluding cost of goods sold, directly related to generating revenue.

Nonoperating Activities

Nonoperating activities involve the revenues and expenses that are not related to the core operations of a business.

Gross Profit Rate

The ratio of gross profit to net sales, expressing the percentage of revenue that exceeds the cost of goods sold.