To Encourage Saving for Retirement, Many Governments Allow People to Avoid

Multiple Choice

To encourage saving for retirement, many governments allow people to avoid income tax on their contributions to pre-tax retirement plans. Consider the decisions (i) to set up a pre-tax retirement plan, and (ii) on the amount to put aside for retirement. Classify as decisions of participation or extent.

A) (i) Participation. (ii) Extent.
B) (i) Extent. (ii) Extent.
C) (i) Participation. (ii) Participation.
D) (i) Extent. (ii) Participation.