Satish,age 11,is a Dependent of His Parents

question 125

Multiple Choice

Satish,age 11,is a dependent of his parents.His only source of income in 2017 is $3,000 of interest income on bonds given him by his grandparents.Satish's marginal rate is 10%,and his parent's marginal rate is 28%.Satish's tax is

• A)$357.
• B)$195.
• C)$546.
• D)$300.

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Definitions:

Output Quantity

The amount of goods or services produced by a company or sector within a specific period.

Network Effects

The phenomenon whereby increased numbers of people or participants improve the value of a good or service.

Simultaneous Consumption

A situation where a good or service can be consumed by more than one individual at the same time without reducing the quantity available to others.

Monopoly Power

The ability of a monopoly to set or influence prices within the market due to the lack of competitive pressures.