A Medical Expense Deduction Is Allowed for All of the Following

question 59

Multiple Choice

A medical expense deduction is allowed for all of the following items except

• A)Treatment affecting any function of the body
• B)Expenditures for prescription medicines or drugs
• C)Expenses paid for transportation essential to the rendition of medical care
• D)Expenses for health club membership
• E)Medical care insurance premiums for taxpayer and dependents

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Definitions:

Utility Function

A mathematical representation that describes how consumers rank different bundles of goods according to the levels of satisfaction or utility those bundles provide.

Edgeworth Box

A diagram used in economics to show the distribution of resources and to find the optimal allocation for two individuals.

Contract Curve

In economics, it refers to the locus of optimal points of allocation of resources between two parties under the constraints of their respective utility functions.

Pareto Optimal

A state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.