In General, Which of the Following Statements Regarding Self-Employed Retirement

question 69

Multiple Choice

In general, which of the following statements regarding self-employed retirement accounts is true?

• A) SEP IRAs have higher contribution limits than individual 401(k)s if the contributing taxpayer is at least 50 years of age at year end.
• B) SEP IRAs have higher contribution limits than individual 401(k)s no matter the age of the contributing taxpayer.
• C) Individual 401(k)s have higher contribution limits than SEP IRAs.
• D) None of these. Both SEP IRAs and individual 401(k)s have exactly the same annual contribution limits.

Understand the significance and implications of the production possibilities curve.

Learn about the efficiency represented by points on the production possibilities frontier.

Recognize the implications of the bowed-out shape of the production possibilities frontier indicating increasing opportunity costs.

Understand the distinction between attainable and unattainable outputs as represented by the production possibilities frontier.

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Definitions:

Engineering Change

A modification to a product’s design, production process, or materials, usually made to improve functionality or to reduce costs.

Allocation Base

A criterion or standard used to distribute overhead costs among various cost objects.

Direct Labor Dollars

The total cost of wages paid to workers directly involved in manufacturing or producing a company's products.

Fabrication Department

The division within a manufacturing company responsible for constructing and assembling the products or components.