Which of the Following Statements Describing Individual Tax Deductions Is

question 15

Multiple Choice

Which of the following statements describing individual tax deductions is false?

• A) In a year in which an individual takes the standard deduction, any itemized deductions yield no tax benefit.
• B) The majority of individual taxpayers itemize rather than taking the standard deduction.
• C) Individuals elect to itemize deductions in a tax year in which total itemized deductions exceed the standard deduction.
• D) Individuals who pay self-employment tax can deduct one half of the tax as an above-the-line deduction.

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Definitions:

Price-fixing

An illegal agreement among competitors to sell a product or service at a predetermined price, rather than letting market forces dictate pricing.

Regional Monopolies

Companies or entities that exclusively control the supply of a particular good or service in a specific geographic area.

OPEC Cartel

The Organization of the Petroleum Exporting Countries, a group of oil-producing nations that coordinates policies and prices of petroleum.

World Supply

The total amount of a particular good or service that is available for purchase on the global market.