In Which of the Following Circumstances Will Income of the Child

question 79

Multiple Choice

In which of the following circumstances will income of the child be taxed at the marginal tax rate of the child's parent?
I.Nicole,age 17,has $4,000 of interest income from Microsoft bonds.
II.Catherine,age 19,has $2,300 of royalty income from oil producing property.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Free Riders

Individuals who benefit from resources, goods, or services without paying for them or contributing to their provision.

Public Goods Dilemma

A situation in which individuals can benefit from a public good without contributing to its cost, leading to potential under-provision or degradation of that good.

Tragedy of the Commons

A situation in a shared-resource system where individual users acting independently according to their own self-interest behave contrary to the common good, depleting or spoiling the shared resource.

Collective Behavior

Actions or behaviors displayed by a group of people who take collective action in response to an event, situation, or crisis.