During the Current Year, Doris Received a Large Gift from Her

question 59

Essay

During the current year, Doris received a large gift from her parents and a sizeable inheritance from an uncle. She also paid premiums on an insurance policy on her life. Doris is confused because she cannot find any place on Form
1040 to report these items. Explain.

Analyze the effects of price floors on market equilibrium, including changes in consumer and producer surplus.

Calculate changes in surplus and deadweight loss resulting from government policies.

Understand the concept of deadweight loss and its causes within the context of market interventions.

Evaluate the efficiency of market outcomes versus outcomes with government intervention.

---

Definitions:

Selection

The process by which certain traits become more prevalent in a population due to differential survival and reproduction of individuals who possess those traits.

Antagonistic Pleiotropy

A genetic trait that confers a benefit to an organism in one context but may be detrimental in another.

Mutations

Changes in the nucleotide sequence of an organism’s DNA, leading to genetic diversity and can cause new genes and alleles to arise.

Fitness

The genetic contribution of an individual to the next generation's gene pool, often measured by the individual's reproductive success.