Tom, Age 13, Is Claimed as a Dependent by His

question 1

Multiple Choice

Tom, age 13, is claimed as a dependent by his parents.Tom has unearned income of $3,400 and $300 of income from mowing lawns in the neighborhood.If the first $2,550 of Tom's net unearned income is taxed at 10%, what is Tom's 2018 income tax liability?

• A)$0
• B)$265
• C)$459
• D)$370
• E)None of the above

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Definitions:

Supply of Capital

The total resources, financial and otherwise, available for investment in production.

Dual Labor Market

describes an economy divided into two segments: a primary sector with secure, well-paid jobs, and a secondary sector with insecure, poorly paid jobs.

Primary Labor Market

Refers to jobs that provide high wages, benefits, job security, and opportunities for advancement.

Occupations

Various kinds of jobs or professions individuals engage in to earn a living.