To Encourage Saving for Retirement, Many Governments Allow People to Avoid

question 19

Multiple Choice

To encourage saving for retirement, many governments allow people to avoid income tax on their contributions to pre-tax retirement plans. Consider the decisions (i) to set up a pre-tax retirement plan, and (ii) on the amount to put aside for retirement. Classify as decisions of participation or extent.

• A) (i) Participation. (ii) Extent.
• B) (i) Extent. (ii) Extent.
• C) (i) Participation. (ii) Participation.
• D) (i) Extent. (ii) Participation.

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Definitions:

Psychotherapy

A therapeutic treatment approach aimed at helping individuals understand their feelings, and to make positive changes in their behaviors and thought processes.

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that are pathological (diseased or disordered) and that cause significant distress or impairment to personal functioning.

Eclectic Approach

To therapy that results from combining elements of several different approaches or techniques.

Psychiatrists

Medical doctors specialized in diagnosing, preventing, and treating mental illness, with the ability to prescribe medication.