Ayla, Age 17, Is Claimed by Her Parents as a Dependent

question 35

Multiple Choice

Ayla, age 17, is claimed by her parents as a dependent. During 2018, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200. Ayla's taxable income is:

• A) $4,200 - $4,550 = $0.
• B) $6,200 - $5,700 = $500.
• C) $6,200 - $4,550 = $1,650.
• D) $6,200 - $1,000 = $5,200.
• E) None of these.

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Definitions:

MR Curve

Stands for Marginal Revenue Curve, which shows how the revenue changes with the sale of one additional unit of a product.

Profit-Maximizing

The approach a company takes to determine the most profitable pricing and output combination.

Deadweight Loss

An inefficiency in the market that occurs when supply and demand are out of balance, resulting in lost economic opportunity.

Consumer Surplus

The distinction in the collective amount consumers are disposed and financially able to spend on a product or service, and the collective amount they actually spend.