Rodrigo and Gwen Are Married and Have 2 Children

question 138

Multiple Choice

Rodrigo and Gwen are married and have 2 children. Gwen earns $65,000, and Rodrigo has a part-time job from which he earns $4,000 during the year. They pay $6,000 in qualified child-care expenses during the year. Rodrigo and Gwen can claim a child-care credit of:

• A)$- 0 -
• B)$800
• C)$1,200
• D)$4,000
• E)$6,000.

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Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price of that good or service changes.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level.

Unit Elasticity

A situation where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.