Which of the Following Mechanisms Is Used by Bureaucrats to Determine

question 28

Multiple Choice

Which of the following mechanisms is used by bureaucrats to determine if their rules have been broken and to impose penalties on violators?

• A) appropriations laws
• B) authorization laws
• C) administrative discretion
• D) administrative rule making
• E) administrative adjudication

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Definitions:

Passive Activity

Economic activities in which the taxpayer does not materially participate, often associated with rental properties or certain business investments.

Ordinary Loss

A loss incurred in the normal operation of a business, which can be used to reduce other taxable income on an owner's tax return.

Itemized Deductions

Expenses that taxpayers can subtract from their taxable income, detailed on Schedule A of the tax return.

AGI

Adjusted Gross Income, a measure of income calculated from your gross income and used to determine how much of your income is taxable.