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.

---

Definitions:

Salary

A fixed regular payment, usually expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

Economic Forecasts

Predictions about future economic activity, including growth rates, inflation, and labor market conditions, based on current and historical data.

In-kind Transfer

In-kind transfers are non-cash distributions of goods or services from governments or organizations to individuals, aimed at assisting with basic needs such as food and housing.

Welfare Payments

Financial assistance provided by a government to individuals in need.