Jed Spends 32 Hours a Week, 50 Weeks a Year

question 57

Multiple Choice

Jed spends 32 hours a week, 50 weeks a year, operating a DVD rental store that he owns.He also owns a music store in another city that is operated by a full-time employee.He elects not to group them together as a single activity under the "appropriate economic unit" standard.Jed spends 40 hours per year working at the music store.

• A)Neither store is a passive activity.
• B)Both stores are passive activities.
• C)Only the DVD rental store is a passive activity.
• D)Only the music store is a passive activity.
• E)None of the above.

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Definitions:

Thought Processes

The mental operations involved in perceiving, knowing, thinking, and problem-solving.

Alcoholic

An alcoholic is a person who suffers from alcoholism, a chronic disease characterized by an uncontrollable desire to drink alcohol despite its negative effects on health and life.

Wine

An alcoholic beverage made from fermented grapes or other fruits, varying greatly in taste, strength, and color.

Pregnant

The state of carrying a developing fetus within the female body.