Identify the Correct Statements I

question 53

Multiple Choice

Identify the correct statements I.Tax deductions are more valuable to a high income earner than tax credits.
II) RESPs are excellent income splitting vehicles for families with young children.
III) Students can deduct moving expenses when they move back home to take up a summer job.

• A)I and II, only
• B)II and III, only
• C)I and III, only
• D)I, II and III
• E)I only

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Definitions:

Perfectly Inelastic

A situation where the demand or supply for a good is completely unresponsive to changes in price.

Deadweight Loss

A loss of economic efficiency that can occur when the optimal allocation of resources is not achieved, often due to market failures or government interventions.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Deadweight Loss

An inefficiency in the economy caused by the lack of or inability to attain equilibrium in the market for a particular good or service.