All Else Equal, Relative to a Person Who Earns Minimum

question 98

Multiple Choice

All else equal, relative to a person who earns minimum wage, a person who earns $30 per hour has:

• A)a higher opportunity cost of working an additional hour.
• B)a higher opportunity cost of taking the day off work.
• C)a lower opportunity cost of driving farther to work.
• D)the same opportunity cost of spending time on leisure activities.

Understand the criteria for qualifying individuals for the child and dependent care expenses credit.

Recognize the impact of AGI on the availability and amount of various tax credits including the retirement savings contributions credit.

Determine the qualifying expenses and limits for the child and dependent care credit.

Understand the implications of certain financial decisions (like taking distributions from education savings accounts) on eligibility for tax credits.

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Definitions:

Coherent Argument

An argument where all the premises logically support the conclusion and are consistent with each other.

Assert

To assert a fact or conviction with confidence and vigor.

Disjunctive Syllogisms

A form of logical argument where, from two propositions, each of which could be true or false, a definite conclusion is drawn.

Suspects

Individuals thought to be involved in or responsible for a criminal activity but not yet proven guilty.