Matching Regarding Classification as a Dependent, Classify Each Statement in One

question 118

Multiple Choice

Matching
Regarding classification as a dependent, classify each statement in one of the four categories:
-A son lives with taxpayer and earns $3,000.

• A)Could be a qualifying child.
• B)Could be a qualifying relative.
• C)Could be either a qualifying child or a qualifying relative.
• D)Could be neither a qualifying child nor a qualifying relative.

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Definitions:

First Welfare Theorem

An economic principle stating that under certain conditions, competitive markets (with no externalities) will lead to a Pareto efficient allocation of resources.

Pure Exchange Economy

An economic model where all agents are consumers, and the only economic activities are the consumption and exchange of goods, with no production.

Numeraire

A standard unit of account in which prices and values are expressed; it serves as a measure for comparing the worth of goods or services.

Endowed

Provided with a quality, ability, or asset.