Paul and Sally File a Joint Return Showing $87,000 of AGI

question 24

Multiple Choice

Paul and Sally file a joint return showing $87,000 of AGI (with no exclusions under Secs.911,931,and 933) .They have three dependent children ages 6,8,and 13.What is the amount of their child credit?

• A)$0
• B)$1,000
• C)$2,000
• D)$3,000

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Definitions:

Marginal Consumer

A consumer who is indifferent between purchasing and not purchasing an additional unit of a good, based on the current price.

Social Cost

The total cost of an activity to society, including both private and external costs.

Private Cost

The costs that an individual or company incurs in the production of goods or services, excluding any externalities.

External Costs

Uncompensated costs incurred by someone who is not involved in the production or consumption of a good or service, typically relating to environmental damage or public health.