Which of the Following Statements Is Not Correct

question 5

Multiple Choice

Which of the following statements is not correct?

• A)The American Opportunity credit and the lifetime learning credit are both phased out at different levels of adjusted gross income.
• B)Expenses paid for room and board do not qualify.
• C)Taxpayers can take both the American Opportunity credit and the lifetime learning credit for the same student in the same year.
• D)The persons who claim the students as dependents can claim the educational credit.
• E)All the statements are correct.

---

Definitions:

Autarky

An economic system wherein a country or entity is self-sufficient and does not engage in international trade.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive, representing the benefit to producers.

Total Surplus

The total net gain to consumers and producers from trading in a market; the sum of the producer surplus and the consumer surplus.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.