Merle Is a Widow,age 80 and Blind,who Is Claimed as a Dependent

question 10

Multiple Choice

Merle is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2013,she received $4,800 in Social Security benefits,$2,350 in bank interest,and $1,800 in cash dividends from stocks.Merle's taxable income is:

• A)$4,150 - $1,000 - $3,000 = $150.
• B)$4,150 - $3,000 = $1,150.
• C)$4,150 - $1,000 - $1,500 = $1,650.
• D)$8,950 - $1,000 - $3,000 = $4,950.
• E)None of the above.

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Definitions:

Average Total Costs

The total costs of production divided by the quantity produced, representing the cost per unit of output.

Average Variable Costs

Represent the total variable costs (costs that change with production volume) divided by the number of units produced.

Average Variable Cost

The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.