Which of the Following Would Be Excluded from Total Income

question 77

Multiple Choice

Which of the following would be excluded from total income to obtain net income?

• A)contributions to RPPs
• B)mortgage interest
• C)child support payments
• D)foreign income exclusion
• E)charitable contributions

---

Definitions:

Intercept

A term in mathematics and economics indicating the value where a function or line crosses an axis on a graph.

Budget Line

A budget line represents the combinations of two goods that a consumer can purchase with a given income and prices, illustrating the trade-off between the two goods.

Risk-free Asset

A Risk-free Asset is an investment with a certain return, with no risk of financial loss, often exemplified by government bonds.

Risky Asset

An investment with a significant degree of uncertainty in its future payoffs, including the potential for losing some or all of the original investment.