Which of the Following Statements Is/are Correct

question 59

Multiple Choice

Which of the following statements is/are correct?
I.Danny falls off a ladder at work and is hospitalized for two weeks. He receives $650 from the state worker's compensation fund, his regular $1,800 salary, and $925 disability pay from his employer's health and accident insurance plan. Danny must recognize $2,725 of income from the payments.
II.Donna's grandfather dies and leaves her City of Goldsboro bonds that are worth $57,000. The bonds have a face value of $50,000 and pay 5% annual interest. Donna must include the $2,500 of interest she receives in her gross income.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Government Enforcement

Refers to the actions and measures taken by government authorities to ensure compliance with laws, regulations, and policies.

Private-Sector Coercion

The exertion of pressure or compulsion on individuals or entities by private organizations or businesses, rather than by governments.

Market Economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses, without substantial government intervention in the form of price controls.