This Year, the IRS Audited Mr and Mr Simon's 2015

question 17

Multiple Choice

This year, the IRS audited Mr and Mr Simon's 2015 income tax return and determined that they underpaid their tax by $13,780. Which of the following statements is true?

• A) If the revenue agent concludes that the Simons made a reasonable attempt to compute their tax, they will not pay anything as a result of the audit.
• B) If the revenue agent concludes that the Simons made a reasonable attempt to compute their tax, they will pay a total of $13,780 as a result of the audit.
• C) In addition to the $13,780 deficiency, the Simons must pay interest to the government regardless of the reason for the deficiency.
• D) If the revenue agent concludes that the deficiency is attributable to the Simons' negligence in preparing their return, the agent may assess a $10,335 penalty.

Understand the concept of marginal revenue product (MRP) and how it is calculated.

Analyze the relationship between marginal product, labor input, and the derived demand for labor.

Identify how firms determine optimal levels of employment and the wages they are willing to pay.

Recognize the role of productivity in determining wages and employment levels.

---

Definitions:

Great Society

A set of domestic programs in the United States launched by President Lyndon B. Johnson aimed at eliminating poverty and racial injustice.

Accomplishments

Achievements or successes achieved through effort, skill, or courage, often recognized and respected by others.

Failings

The shortcomings or deficiencies in performance, structure, or character, often leading to undesirable outcomes or failures.

Democratic National Convention

A major political event where the Democratic Party of the United States selects its presidential and vice-presidential nominees and establishes party platforms.