Classify Each of the Following Statements

question 44

Multiple Choice

Classify each of the following statements.
-Meg gives her 18-year-old son money for his college tuition and living expenses (e.g., room and board) .

• A)No taxable transfer occurs.
• B)Gift tax applies.
• C)Estate tax applies.

---

Definitions:

Marginal Utility

The change in total satisfaction received from consuming one additional unit of a good or service.

Potato Chips

A thin slice of potato that has been deep fried, baked, or otherwise cooked until crunchy, often served as a snack.

Cola

A sweetened carbonated soft drink, usually flavored with a specific type of syrup and often caffeinated.

Marginal Utility

A term in economics referring to the additional satisfaction or utility that a person receives from consuming one more unit of a good or service.