Mr Paul, Age 73 and Single, Earned a $150,000 Salary

question 96

Multiple Choice

Mr Paul, age 73 and single, earned a $150,000 salary (AGI) as a university professor. He no longer participates in the university's qualified retirement plan. Which of the following is true?

• A) Mr. Paul can make a $6,500 deductible contribution to a traditional IRA.
• B) Mr. Paul can make a $6,500 nondeductible contribution to a traditional IRA.
• C) Mr. Paul can make a $6,500 nondeductible contribution to a Roth IRA.
• D) Mr. Paul can't make an IRA contribution.

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Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced.

Long-Run Adjustments

Refers to changes that firms in an industry make in response to economic opportunities or constraints, involving adjustments in production capacity or resource utilization over time.

Marginal Revenue

The extra revenue obtained by selling an additional unit of a product or service.

Upsloping Line

A graphical representation indicating positive correlation between two variables; as one variable increases, so does the other.