Which of the Following Statements Regarding Personal and Dependency Exemptions

question 94

Multiple Choice

Which of the following statements regarding personal and dependency exemptions is true?

• A) To qualify as a dependent of another, an individual must be a resident of the United States.
• B) To qualify as a dependent of another, an individual may not file a joint return with the individual's spouse under any circumstance.
• C) To qualify as a dependent of another, an individual must have a family relationship with the other person.
• D) To qualify as a dependent of another, an individual must be either a qualifying child or a qualifying relative of the other person.

---

Definitions:

Excess Burden

The cost to society created by market inefficiency, which occurs when goods or services are not produced or allocated efficiently.

Economic Decisions

Choices made by individuals, households, firms, or governments regarding allocation of scarce resources to satisfy various needs and desires.

Tax Revenue

Tax Revenue refers to the income that is gained by governments through taxation, which is then used to fund public services and governmental operations.

Excess Burden

The additional cost to society beyond taxes collected resulting from inefficiencies in market outcomes due to taxation or regulations.