Taxable Income Is Determined by Subtracting All but Which One

question 198

Multiple Choice

Taxable income is determined by subtracting all but which one of the following from gross income?

• A)exemptions
• B)Adjustments
• C)exclusions
• D)credits

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Definitions:

Substitution Effect

occurs when consumers replace more expensive items with less costly alternatives as their relative prices change.

Diminishing Marginal Utility

A concept in economics stating that as a person increases consumption of a product, there is a decline in the marginal utility (satisfaction or benefit) that person derives from consuming each additional unit of that product.

Calorie Counts

The measurement of energy provided by food and drink, important for managing dietary health and weight control.

Consumer Behavior

The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.