Aiko (Single, Age 29) Earned $40,000 in 2018

question 51

Essay

Aiko (single, age 29) earned $40,000 in 2018. He was able to contribute $1,800 ($150/month) to his employer sponsored 401(k). What is the total saver's credit that Aiko can claim for 2018? Exhibit 13-9

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Definitions:

Marginal Revenue Product

The extra income produced by the use of an additional unit of a resource, like labor or capital.

Total Output

The total quantity of goods or services produced by an economic entity in a given period.

Marginal Productivity Theory

An economic theory that suggests the wage or value of a worker's output is equal to the additional production the worker generates.

Resource Demand

The desire and ability of a company or economy to acquire goods or services considered essential for operation.