Which of the Following Statements Regarding Dependents Is False

question 114

Multiple Choice

Which of the following statements regarding dependents is false?

• A)A taxpayer may be allowed to claim another as a dependent even if the taxpayer has no family relationship with the other person.
• B)To qualify as a dependent of another, an individual must be a resident of the United States.
• C)An individual who qualifies as a dependent of another taxpayer may not claim any dependents.
• D)An individual cannot qualify as a dependent of another as a qualifying relative taxpayer if the individual's gross income exceeds a certain amount.

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Definitions:

Marginal Revenue

The additional income earned from selling one more unit of a good or service; it's a crucial concept for understanding how firms decide on output levels.

Purely Competitive Industry

An industry characterized by a large number of small firms producing identical products with no single firm able to influence the market price.

Purely Competitive Market

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and ease of entry and exit, leading to price-taking behavior.

Barriers to Entry

Factors that prevent or impede the ability of a new competitor to enter an industry and compete with existing firms.