Refer to Figure 53

question 20

Multiple Choice

Refer to Figure 53.4 and then answer the following questions.

Figure 53.4: Infant mortality and life expectancy at birth in developed and developing countries (data as of 2005) .
-In terms of demographics, which country is likely to experience the greatest population growth problem over the next ten years?

• A) Mexico, because there are fewer pre-reproductive individuals in their population
• B) China, whose population is more than a billion, but whose expected fertility rate is 1.8 children
• C) Germany, where the growth rate of the population is 0.1% per year
• D) United States (2009 population ~ 205,000,000, where 200,000 Americans are added to the population each day)
• E) Afghanistan, with a 3.85 annual growth rate

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Definitions:

Passive Activity Loss Rules

Tax regulations that limit the deductibility of losses from passive activities to income generated by those activities.

At-risk Rules

IRS rules limiting the amount of deductible losses from business or income-producing activity based on the taxpayer's financial stake in the activity.

Passive Loss Rules

IRS regulations that prevent investors from offsetting income with losses from passive activities unless they directly participate in them.

Disallowed Loss

A loss that cannot be deducted for tax purposes, often because it does not meet specific criteria set by tax authorities.