What Statement Is Not Accurate Regarding Participation in an HSA

question 83

Multiple Choice

What statement is not accurate regarding participation in an HSA?

• A)A health savings account is intended for people who have a high-deductible health care plan.
• B)Employees make tax-deductible contributions to their HSAs to be used for eligible expenses.
• C)The employee invests HSA funds and the money in the account grows tax-free
• D)Employers are prohibited from making contributions to their employees' HSA.

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Definitions:

Average Variable Cost

The total variable cost divided by the number of units produced, representing the variable cost per unit of output.

Purely Competitive Market

A market structure characterized by a large number of sellers offering identical products, where no single seller can influence the market price.

Average Fixed Cost

The costs in production that remain constant regardless of output level, when divided by the produced output quantity.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the excess over the firm's opportunity costs.