Debbie,a Calendar Year Taxpayer,did Not File a Tax Return for 2003

question 102

True/False

Debbie,a calendar year taxpayer,did not file a tax return for 2003 because she honestly believed that no additional tax was due.In 2008,Debbie is audited by the IRS and the agent assesses a deficiency of $7,000 for tax year 2003.Debbie need not pay this deficiency,since the statute of limitations expired on April 15,2007.

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Definitions:

Isoquant

A curve representing all the combinations of inputs that result in the production of a certain level of output, used in the study of production theory.

Capital

The wealth, whether in money or other assets, owned or employed in business by an individual, firm, or country.

Labor

The human effort, both physical and mental, used in the production process to create goods and services.

Isocost Line

A graphical representation that shows all possible combinations of inputs that cost the same amount of money.