Match the Statements That Relate to Each Other

question 4

Short Answer

Match the statements that relate to each other. Note: Choice l. may be used more than once.
a.Available to a 70-year-old father claimed as a dependent by his son.
b.Equal to tax liability divided by taxable income.
c.The highest income tax rate applicable to a taxpayer.
d.Not eligible for the standard deduction.
e.No one qualified taxpayer meets the support test.
f.Taxpayer's ex-husband does not qualify.
g.A dependent child (age 18) who has only unearned income.
h.Highest applicable rate is 39.6%.
i.Applicable rate could be as low as 0%.j.Maximum rate is 28%.k.Income from foreign sources is not subject to tax.l.No correct match provided.
-Territorial system of taxation

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Definitions:

Perfect Substitutes

Goods or services that can be used in exactly the same way, where the consumer is indifferent between the two and will choose the cheaper one.

Scale

The size, extent, or level of something, typically used in the context of production or operations to indicate magnitude or capacity.

Returns to Scale

A concept in economics that describes how the output of a firm changes as all its inputs are increased proportionally.

Short Run

A period in economics during which at least one factor of production is fixed, limiting the adjustment processes of the economy.