Identify Which of the Following Statements Is True

question 3

Multiple Choice

Identify which of the following statements is true.

• A)If a foreign national has a closer connection with his home country, the individual is taxed as a resident alien.
• B)To obtain resident status, an alien must meet both the lawful permanent resident test and the substantial presence test.
• C)An individual who is a resident alien of the United States is taxed on his or her worldwide income at the same tax rates that would apply to a U.S. citizen.
• D)All of the above are false.

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Definitions:

Total Economic Costs

The sum of all costs associated with the production of a good or service, including both explicit (direct) costs and implicit (indirect or opportunity) costs.

Implicit Cost

The opportunity costs of using resources that a firm already owns to make its products, as opposed to renting, selling, or using them in another way.

Forgone Rent

The potential income lost by choosing to use a property or resource in a way that is not financially optimal or by not using it at all.

Economic Profits

The surplus generated from business activities after accounting for both explicit and implicit costs, including opportunity costs, representing above-normal returns.