Fred and Flossie Are Married and Their Adjusted Gross Income

question 94

Multiple Choice

Fred and Flossie are married and their adjusted gross income is $194,000.Both Fred and Flossie are active participants in their company's qualified pension plan and have never established an Individual Retirement Account.What is the maximum combined amount they can contribute to Roth IRAs?

• A)$- 0 -
• B)$2,000
• C)$5,500
• D)$8,000
• E)$11,000

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Definitions:

Marginal Product

The additional output produced as a result of adding one more unit of a specific input, keeping all other inputs constant.

Additional Output

The extra quantity of output produced as a result of increasing the level of input by one unit.

Unit of Labor

A measurement of work or effort by an employee or worker.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate in a specific period.