Which of the Following Is True of the Standard Deduction

question 26

Multiple Choice

Which of the following is true of the standard deduction amounts?

• A)The amount is standard for all individual tax returns; that is, the amount deducted on all individual tax returns is the same.
• B)The standard deduction does not affect adjusted gross income.
• C)The standard deduction for all taxpayers who file a joint return provides the same tax benefit.
• D)All of the above are true.

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Definitions:

Clear The Market

This is a term used in economics to describe a scenario where the quantity supplied matches the quantity demanded, meaning the market is in equilibrium and there are no surplus or shortage.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a specified time period.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Rationing Function

The ability of market prices to allocate scarce goods and services among competing demands.