Which of the Following Would Result in a Reduction of Taxable

question 76

Multiple Choice

Which of the following would result in a reduction of taxable income?

• A)portfolio income
• B)tax credits
• C)union dues
• D)business income
• E)earned income

---

Definitions:

Opportunity Cost

The expense incurred by not choosing the second-best option available when a decision is made or an action is taken.

Pure Capitalism

An economic system characterized by private ownership of the means of production and where investments, distribution, income, production, and prices are determined by the market.

Owns No Resources

The condition of not having access to or control over any assets, capital, or means of production.

Production Possibilities Frontier

A curve that shows the different combinations of various goods that a country can produce given certain resources and technology.