Ruth Purchased an Annuity Contract for $10,000

question 3

True/False

Ruth purchased an annuity contract for $10,000. When she turns 65, she will receive $150 a month for the rest of her life. The first $10,000 she receives is a return of her capital and is not taxable.

---

Definitions:

Tariff

A tax imposed by a government on imported goods, often used to protect domestic industries and to raise government revenue.

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of goods and services.

World Price

The international market price of a good or service, influenced by factors like supply and demand, tariffs, and trade agreements.

Exporting Steel

The act of selling and shipping steel from one country to another, contributing to international trade.