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For 2016, Wilson and Virginia Todd Qualify for the Earned

question 67

Essay

For 2016, Wilson and Virginia Todd qualify for the earned income credit. They file married filing jointly and have two dependent children, ages 6 months and 4 years at the end of the year.
a.​

Using the EIC tables, calculate the amount of Wilson and Virginia Todd's earned income credit assuming Wilson has earned income of $7,300 and Virginia has no earned income.Their adjusted gross income for 2016 is $9,000.
b.​

Calculate the amount of Wilson and Virginia Todd's earned income credit assuming Wilson has earned income of $14,300 and Virginia has earned income of $2,000.Their adjusted gross income for 2016 is $16,500.


Definitions:

Consumption

Consumption involves the use of goods and services by households, representing one of the primary components of economic activity and an indicator of economic health.

Total Cost

Represents the complete expense incurred in the production of goods or services, combining both fixed and variable costs.

Price of Cheese

The amount of money required to purchase a specific quantity or unit of cheese.

Utility Function

A mathematical expression that measures a consumer's satisfaction or happiness from consuming various bundles of goods and services.

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