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George and Erin Divorced in 2019, and George Is Required

question 76

True/False

George and Erin divorced in 2019, and George is required to pay Erin $20,000 of alimony each year. George earns $75,000 a year. Erin is required to include the alimony payments in gross income although George earned the income.


Definitions:

Independent Self-Construal

Viewing self as a unique active agent serving one’s own goals.

Market Pricing

An economic principle that describes how prices are determined in a market-based on supply and demand.

Collectivistic Culture

A culture in which the emphasis is on interdependence, cooperation, and the welfare of the group over that of the individual.

Individualistic Culture

A culture in which the emphasis is on individual initiative, achievement, and creativity over maintenance of social cohesion.

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