Taxpayers Need Not Include an Income Item in Gross Income

question 63

True/False

Taxpayers need not include an income item in gross income unless there is a specific tax provision requiring the taxpayer to include the income item in gross income.

Recognize notable federal agencies and their functions within the government structure.

Understand the impact of legislation on the structure and operations of the federal workforce.

Analyze the dynamics of bureaucracy through concepts such as the iron triangle.

Understand the efforts made towards government transparency and accountability.

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Definitions:

Convex Preferences

A preference structure where a consumer prefers mixtures or averages of two goods or bundles to extreme amounts of one good or bundle.

Utility Function

A mathematical representation in economics that quantifies the satisfaction or happiness an individual gains from consuming various bundles of goods and services.

Income Effect

Shifts in income for individuals or within the economy and their consequences on the volume of goods or services demanded.

Utility Function

A mathematical representation of a consumer's preference, showing the level of satisfaction or happiness derived from consuming various bundles of goods and services.