Kyle and Liza Are Married and Under 65 Years of Age.During

question 73

Multiple Choice

Kyle and Liza are married and under 65 years of age.During 2012, they furnish more than half of the support of their 19-year old daughter, May, who lives with them.She graduated from high school in May 2011. May earns $15,000 from a part-time job, most of which she sets aside for future college expenses.Kyle and Liza also provide more than half of the support of Kyle's cousin who lives with them.Liza's father, who died on January 3, 2012, at age 90, has for many years qualified as their dependent.How many personal and dependency exemptions should Kyle and Liza claim?

• A)Two.
• B)Three.
• C)Four.
• D)Five.
• E)None of the above.

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Definitions:

Minimum Wage

The lowest legal hourly rate that employers can pay their workers, set by government law or regulation.

Labor Demand Curve

The labor demand curve represents the relationship between the quantity of labor demanded by employers and the wage rate, typically showing an inverse relationship.

Monopsonistic Employer

A single buyer, typically an employer, that controls the market for its labor and thus can influence wages and employment terms.

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity can influence price, promoting efficiency and innovation.