A Plan Is Referred to as Noncontributory When

question 51

Multiple Choice

A plan is referred to as noncontributory when:

• A) it is tax deductible
• B) only the employee contributes to it
• C) only the employer contributes to it
• D) only the federal government contributes to it
• E) the employer matches any finds the employee chooses to contribute

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Definitions:

Government

The organization, or agency through which a political unit exercises authority and performs functions and which is usually classified according to the distribution of power within it.

External Benefit

A benefit that affects parties not directly involved in a transaction, leading to positive side effects or externalities.

Harmful Chemicals

Substances that are toxic or dangerous to health and the environment.

Equilibrium Quantity

The quantity of goods or services supplied equals the quantity demanded at the market price, achieving market balance.