Electronically Filed Tax Returns

question 98

Multiple Choice

Electronically filed tax returns:

• A)May not be transmitted from a taxpayer's home computer.
• B)Constitute more than 90 percent of the returns filed with the IRS.
• C)Have error rates similar to paper returns.
• D)Offer faster refunds than paper returns.

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Definitions:

Substitution Effect

The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods.

Income Effect

The alteration in the consumption habits of a person or an economy due to a variation in actual income.

Inferior Good

A type of good for which demand decreases when income increases, and vice versa, unlike normal goods where demand increases with an increase in income.

Marginal Utility

The additional enjoyment or value that comes from the consumption of one more unit of a product or service.