Which of the Following Is Most Likely to Be an Inferior

question 109

Multiple Choice

Which of the following is most likely to be an inferior good?

• A)airline travel
• B)restaurant meals
• C)a subscription to the Wall Street Journal
• D)soft drinks
• E)used clothing

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Definitions:

Retirement Savings Contributions Credit

A tax credit that encourages low to moderate income taxpayers to make contributions to qualified retirement accounts.

AGI

Adjusted Gross Income is the total income minus specific deductions, used to determine taxable income on an individual's tax return.

Contributed

The act of giving or donating something, often for a cause or in context of capital given to a business or investment.

Foreign Tax Credit

An irreversible tax credit for income taxes remitted to a foreign country because of withholdings on foreign income tax.