Which of the Following Taxpayers Are Not Required to Make

question 43

Multiple Choice

Which of the following taxpayers are not required to make estimated payments?

• A)A car mechanic who is self-employed and earns $50,000 a year.
• B)A wealthy individual whose earnings are from corporate dividends.
• C)An employee who works at a local department store with appropriate withholding and no other income.
• D)All of the above must make estimated payments.

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Definitions:

Marginal Cost

The incremental cost involved in producing an additional unit of a product or service.

Natural Monopolist

A single supplier in a market that can supply the entire market at a lower cost than any combination of two or more suppliers.

Socially Efficient

A situation in which a market or economy allocates resources in a way that maximizes the overall welfare of society.

Natural Monopolist

A company that can provide goods or services at a lower cost than any competitors can, due to economies of scale, often leading to a monopoly in the market.