Cheryl Is Single, Has One Child (Age 6), and Files

question 18

Multiple Choice

Cheryl is single, has one child (age 6) , and files as head of household during 2016. Her salary for the year is $19,500. She qualifies for an earned income credit of the following amount.

• A)$0.
• B)$3,115.
• C)$3,215.
• D)$3,400.

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Definitions:

Risk Loving

A financial term describing an individual or entity's preference for taking risks, where the potential for higher gains outweighs the possibility of losses.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Expected Utility Maximizer

An economic theory that assumes individuals choose among risky alternatives in such a way as to maximize their expected utility.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.