Every Society Must Deal with the Problem of Scarcity Because

question 57

Multiple Choice

Every society must deal with the problem of scarcity because

• A) people do not have enough money to buy everything they need.
• B) government taxes consumers too much.
• C) human beings become satiated as consumption increases.
• D) human wants are nearly unlimited relative to the availability of resources.
• E) productive resources, technology, and labor are unlimited.

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Definitions:

Child Tax Credit

A tax benefit that allows taxpayers to reduce their tax liability on a dollar-for-dollar basis for each qualifying child under a certain age.

AGI

Adjusted Gross Income, which is total income minus specific deductions, used to determine tax liability.

Adoption Credit

A tax credit offered by the IRS to offset some expenses involved in the legal adoption of a child.

Modified AGI

Modified Adjusted Gross Income, an income measure used for tax purposes, adjusting the AGI for specific deductions or exclusions.