If a Person Were in the 15% Tax Bracket and Given

question 55

Multiple Choice

If a person were in the 15% tax bracket and given the choice of a $500 credit or a $2500 deduction

• A)he would take the deduction every time.
• B)he would take the credit every time.
• C)he would not care. They would constitute the same tax benefit.
• D)he would not qualify for either.

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Definitions:

Rationality Limitations

The boundaries and constraints on human decision-making ability caused by cognitive limitations, incomplete information, and time constraints.

Decision Making

The method of selecting options through recognizing a decision, collecting data, and evaluating different solutions.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Reimburses

Refers to the act of compensating someone for an expense they have incurred.