Which of the Following Is True About the Self-Employed Health

question 82

Multiple Choice

Which of the following is true about the self-employed health insurance deduction?

• A)Dental insurance is not part of the allowable deduction.
• B)Medical insurance is allowed as a deduction, subject to a dollar limitation.
• C)Life insurance is allowed as a deduction.
• D)Long-term care insurance is allowed as a deduction, subject to a dollar limitation.
• E)The cost of insurance for dependent children is not allowed.

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Definitions:

Utility

The subjective benefit or satisfaction a person expects from a choice or course of action.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.

Economizing Behavior

The practice of seeking to achieve maximum utility with limited resources, leading to optimal decision making.

Lowest Cost Method

A principle of optimizing operations or production by minimizing the costs involved in the process.