H and W Are Married with Three Children

question 19

Multiple Choice

H and W are married with three children.At the close of 20x6, the children, X, Y, and Z, were ages 2, 6, and 8, respectively.H and W claim a dependency exemption for each of the children.This year H and W reported adjusted gross income of $115,500.The allowable child tax credit for H and W is

• A)$2,700
• B)$0
• C)$1,200
• D)$1,000
• E)$900

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Definitions:

Society's Wants

The collective desires and needs of a community or society that drive demand and economic activity.

Exchange and Trade

The act of giving one thing and receiving another between two parties, typically involving goods, services, or both.

Capitalist Economy

An economic system where private individuals rather than the state own and control businesses and the means of production.

Market System

The operational mechanics of this economic setting revolve around decisions on investment, production rates, and distribution channels being directed by supply and demand, with a pricing strategy that allows for free determination of goods and services prices.