Nicole's Employer Pays Her $150 Per Month Toward the Cost

question 63

True/False

Nicole's employer pays her $150 per month toward the cost of parking near a railway station where Nicole catches the train to work.The employer also pays the cost of the rail pass, $75 per month.Nicole can exclude both of these payments from her gross income.

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Definitions:

Government Subsidy

refers to financial support provided by the government to businesses, individuals, or other governmental entities to encourage or support certain activities or reduce their costs.

Welfare Payments

Government-provided financial assistance to individuals or households, typically aimed at supporting those who are unemployed, disabled, or on a low income.

Efficiency Loss

The reduction in economic welfare or efficiency that occurs when a market does not allocate resources optimally, often due to externalities or market power.

Demand Curves

A visual depiction showing how the price of a product relates to the amount people want to buy.