To Qualify as a Qualifying Relative, an Individual Must Meet

question 10

True/False

To qualify as a qualifying relative, an individual must meet three of five tests. These are the gross income test; the support test; the relationship or member of the household test; the citizen or residency test; and the joint return test.

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Definitions:

Independently Acting Buyers

are consumers who make purchasing decisions based on their own preferences and circumstances, without coordinating with others.

Freedom to Enter

The condition in a market where new firms can enter the industry without facing prohibitive barriers or regulations.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choosing between options.

Diminishing Marginal Utility

The principle that as a consumer consumes more of a good or service, the additional satisfaction gained from each additional unit decreases.