An Individual May Not Qualify for the Dependency Exemption as a Qualifying

question 29

True/False

An individual may not qualify for the dependency exemption as a qualifying child but may still qualify as a dependent.

---

Definitions:

Diseconomies of Scale

The phenomenon where, as a firm expands, its costs start increasing per unit of output, usually due to inefficiencies and management challenges that arise with size.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase and may decrease.

Natural Monopoly

A market structure where a single provider is more efficient in supplying the entire market with a product or service, due to high fixed or startup costs.