A Trust That Is Required to Distribute All of Its

question 35

Multiple Choice

A trust that is required to distribute all of its income annually receives a personal exemption for the year of

• A) $300.
• B) $100.
• C) $0, because it retains no income.
• D) $600.

---

Definitions:

Indifference Curves

Graphs used in economics to show combinations of two goods that provide equal satisfaction and utility to a consumer.

Budget Line

A graphical representation of all possible combinations of two goods which can be purchased with a given budget at fixed prices.

Utility Function

A utility function is a mathematical representation in economics that depicts an individual's preference ranking over a set of goods or outcomes, showing the level of satisfaction or utility derived from them.

Nuts

Hard-shelled edible seeds of certain plants, often rich in oil and nutrients.