Which One of the Following Statements About 401k Plans Is

question 7

Multiple Choice

Which one of the following statements about 401k plans is not correct?

• A) The employer will typically match some portion of an employee's contributions to a 401k.
• B) A 401k plan is a defined contribution plan.
• C) Allowable contributions to 401k plans are limited.
• D) Withdrawals from 401k plans are not taxed upon retirement.

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Definitions:

Positive Output

A situation where the production of goods or services results in a quantity greater than zero.

Long-Run Cost Function

A representation of the total cost associated with producing a given level of output when all inputs, including capital, can be varied.

Positive Output

A situation in which an economic model or production process results in a positive amount of goods or services being produced.

Supply Function

A mathematical relationship that shows the quantity of a good or service that producers are willing and able to sell at different prices.