Which of the Following Represents a Positive Statement

question 141

Multiple Choice

Which of the following represents a positive statement?

• A) A higher income tax rate will reduce the amount of time that people spend working.
• B) Teenage unemployment should be reduced.
• C) We should raise the standard of living for the elderly.
• D) A decrease in tax rates is needed to help the poor.

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Definitions:

Cents Per Mile

An IRS-allowed method of calculating deductions for business vehicle expenses based on miles driven.

Net Investment Income

The total income received from investment assets, like stocks and bonds, minus related expenses.

Investment Interest Expense

The interest paid on money borrowed to purchase taxable investments, which can be deducted up to the amount of net investment income.

Stock Purchase

The act of buying shares of a corporation, thereby acquiring a portion of ownership in the company.