Wilma,age 70 and Single,is Claimed as a Dependent on Her

question 60

Multiple Choice

Wilma,age 70 and single,is claimed as a dependent on her daughter's tax return.During 2015,she had interest income of $2,500 and $800 of earned income from babysitting.Wilma's taxable income is:

• A)$700.
• B)$900.
• C)$1,750.
• D)$2,250.
• E)None of these.

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Definitions:

Consumer Sovereignty

The determination by consumers of the types and quantities of goods and services that will be produced with the scarce resources of the economy; consumers’ direction of production through their dollar votes.

Legislation

Laws or legal statutes passed by a legislative body, governing body, or the process of enacting laws.

Market System

An economic system in which decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.

Private Ownership

The holding of property by non-governmental legal entities or individuals, allowing control and use of the property according to the owner's preferences.