Which of the Following Statements Is Incorrect

question 113

Multiple Choice

Which of the following statements is incorrect?

• A)Annuity payments may be for a specified period of time or for the life of the contract holder.
• B)An annuity is a series of payments under a contract.
• C)Annuity payments are fixed in amount.
• D)The proportional amount of an annuity payment that is attributable to the cost of the contract is tax-free.

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Definitions:

Marginal Social Benefit

The additional benefit society gains from consuming one more unit of a good or service.

Marginal Social Cost

The additional cost imposed on society as a whole by producing one extra unit of a good or service.

Pollution

The addition of pollutants to the natural surroundings, leading to harmful alterations.

Environmental Standard

Regulations and criteria set by authorities aimed at minimizing the environmental impact of various activities, such as emissions levels and waste management protocols.