Match Each of the Following Statements with the Terms Below

question 196

Multiple Choice

Match each of the following statements with the terms below that provide the best definition.
-Startup costs

• A)Adjusted basis of each partnership asset.
• B)Operating expenses incurred after entity is formed but before it begins doing business.
• C)Each partner's basis in the partnership.
• D)Reconciles book income to taxable income.
• E)Tax accounting election made by partnership.
• F)Tax accounting calculation made by partner.
• G)Tax accounting election made by partner.
• H)Does not include liabilities.
• I)Designed to prevent excessive deferral of taxation of partnership income.
• J)Amount that may be received by partner for performance of services for the partnership.
• K)Theory under which a partnership's recourse debt is shared among the partners.
• L)Will eventually be allocated to partner making tax-free property contribution to partnership.
• M)Partner's share of partnership items.
• N)Must generally be satisfied by any allocation to the partners.
• O)Justification for a tax year other than the required taxable year.
• P)No correct match is provided.

Distinguish between the perspectives of supply-side economics, rational expectations theory, and new classical economics on the role of government in the economy.

Understand the principles of rational expectations theory and its criticisms.

Know the macroeconomic policies implemented during the Great Recession and their effects.

Identify the differing views of economic schools of thought on government intervention during economic downturns.

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Definitions:

False Consensus Effect

The tendency to overestimate how much other people share our beliefs, attitudes, and behaviors.

Primacy Effect

The tendency to remember the first items in a series better than the middle or last items, indicating the impact of first impressions.

Statistical Regression

A statistical technique used to determine the relationships between one dependent variable and one or more independent variables.

Liberal News Media

Media outlets perceived or characterized as promoting liberal, progressive viewpoints, often emphasizing social equality, environmental issues, and reform.