Both Economic and Social Considerations Can Be Used to Justify

question 150

Multiple Choice

Both economic and social considerations can be used to justify:

• A)Favorable tax treatment for accident and health plans provided for employees and financed by employers.
• B)Disallowance of any deduction for expenditures deemed to be contrary to public policy (e.g., fines, penalties, illegal kickbacks, bribes to government officials).
• C)Various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education.
• D)Allowance of a deduction for state and local income taxes paid.
• E)None of these.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the quantity of a good consumers are willing to buy and its price.

Demand Function

A mathematical representation that describes the relationship between the quantity of a good demanded and its price, among other variables.

Inverse Demand Function

A representation of demand that expresses price as a function of quantity, rather than the conventional demand function which expresses quantity demanded as a function of price.

Price Elasticity

Measures the responsiveness of quantity demanded or supplied to a change in price.