Carl Filed His Tax Return, Properly Claiming the Head of Household

question 35

Multiple Choice

Carl filed his tax return, properly claiming the head of household filing status. Carl's employer paid or provided the following to Carl: How much of this income should Carl report (assume benefits are provided on a nondiscriminatory basis) ?

• A) $65,000
• B) $69,000
• C) $69,500
• D) $70,100

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Definitions:

Inefficiency

A situation in which resources are not used in the most productive way, leading to wasted inputs or suboptimal output.

Output

The total amount of goods or services produced by a firm or economy.

Taxed Away

Refers to the reduction in income or resources that occurs as a result of taxation.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.