For No Particularly Good Reason, Ms

question 62

Multiple Choice

For no particularly good reason, Ms. Totter has not yet filed her 2012 Form 1040. Which of the following statements is false?

• A)If the government owes Ms.Totter a refund of 2012 tax, there is no penalty if she never files the return.
• B)The statute of limitations on the return will not begin to run until Ms.Totter files the return.
• C)If Ms.Totter owes additional 2012 tax, she also will owe a late-filing and late-payment penalty.
• D)None of the above is false.

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Definitions:

Total Utility

The overall satisfaction or happiness derived from consuming a certain amount of goods or services.

Maximize

The process of increasing a particular outcome or value to its highest possible level given a set of constraints.

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Substitution Effect

The substitution effect occurs when consumers replace pricier goods with cheaper alternatives as prices change, reflecting changes in consumption patterns due to relative price differences.