Why Might Someone Choose to Use Itemized Deductions Instead of Taking

question 84

Multiple Choice

Why might someone choose to use itemized deductions instead of taking the standard deduction offered by the IRS?

• A) It is easier to calculate your itemized deductions versus the standard deduction.
• B) You may have a lower tax liability if you itemize instead of using the standard deduction.
• C) Married taxpayers must use the itemized deductions only.
• D) Most Computer Tax software automatically itemizes deductions.
• E) both B and C are correct

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Definitions:

Output

The amount of goods or services produced by a person, machine, factory, or entire economy in a certain period.

Returns To Scale

A concept in economics that describes how the output of a production process changes as the scale of production inputs changes.

Production Function

A mathematical model that describes the relationship between inputs used in production and the resultant output.

Isoquant

An isoquant is a curve depicting all combinations of inputs which produce the same level of output, used in the study of production theory.