Tony, Age 15, Is Claimed as a Dependent by His

question 71

Multiple Choice

Tony, age 15, is claimed as a dependent by his grandmother.During 2019, he had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $800.Tony's taxable income is:

• A)$1,800.
• B)$1,800 - $800 - $1,100 = ($100).
• C)$1,800 - $1,150 = $650.
• D)$1,800 - $1,100 = $700.
• E)None of these.

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Definitions:

Paradox of Voting

A situation where the rational choice for an individual is not to vote, due to the negligible impact of a single vote on the outcome, yet if everyone behaves likewise, it undermines the electoral process.

Majority Voting

A decision-making process where the choice that receives more than half of the votes is adopted or enacted.

Median-Voter Model

A theoretical model in political science and economics predicting that the outcome of majority rule voting will reflect the preferences of the median voter.

Socially Efficient Outcome

An economic situation where resources are allocated in a way that maximizes the aggregate welfare of society.