Which of the Following Is a True Statement

question 64

Multiple Choice

Which of the following is a true statement?

• A)Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax.
• B)To deduct expenses associated with any profit motivated activity, taxpayers must maintain a high level of involvement or effort in the activity throughout the year.
• C)Business activities never require a relatively high level of involvement or effort from the taxpayer.
• D)All business expenses are deducted for AGI.
• E)All of the above are truE.See discussion of the self-employment deduction in the text.

---

Definitions:

Nonrival-in-consumption

Nonrival-in-consumption describes a good or service that can be consumed by multiple people simultaneously without reducing its availability to others.

Radio Broadcast

The transmission of audio content through radio waves to reach a wide audience, commonly used for music, news, and entertainment programming.

Consumers

Individuals or organizations that purchase goods or services for personal use or consumption.

Imperfect Information

A situation where all parties in an economic transaction do not have equal access to relevant information.