Identify Which of the Following Statements Is True

question 10

Multiple Choice

Identify which of the following statements is true.

• A)The failure-to-pay penalty is waived if the additional tax due with the filing of the extended return does not exceed 15% of the tax owed for the year.
• B)If both the failure-to-file and the failure-to-pay penalties are owed, the taxpayer will incur a maximum addition to tax of 5.5% per month.
• C)Individuals having substantial income from sources not subject to regular withholding generally should make quarterly estimated tax payments to the IRS.
• D)All of the above are false.

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Definitions:

Long Run

An economic period sufficiently long enough to allow all inputs or factors of production to be varied or adjusted, as opposed to the short run where some inputs are fixed.

Marginal Cost

The added expense resulting from creating one more unit of a good or service.

Marginal Revenue

The additional income from selling one more unit of a good or service.

Short-run Supply Curve

A graphical representation showing the quantity of goods a firm is willing and able to supply at different prices over a short period, assuming some inputs are fixed.