UStaxpayers Spend Many Hours During the Year Maintaining Records for Tax

question 152

Multiple Choice

U.S.taxpayers spend many hours during the year maintaining records for tax purposes and preparing their income tax returns.This administrative cost

• A)is part of the deadweight loss of taxation.
• B)is equal to the value of consumer surplus associated with the income tax system.
• C)can be claimed as a deduction on income tax returns.
• D)is larger for individuals in the lowest income quintile than for individuals in the highest income quintile.

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Definitions:

Impulsive

Impulsive describes a tendency to act quickly on desires and feelings without considering the consequences.

Panic Disorder

A psychiatric disorder characterized by unexpected and repeated episodes of intense fear accompanied by physical symptoms that may include chest pain, heart palpitations, shortness of breath, dizziness, or abdominal distress.

Intense Fear

An overwhelming and often irrational sense of apprehension or panic, usually in response to a specific stimulus or situation.

Palpitations

Uncomfortably noticeable heartbeats that are unusually strong or irregular, often perceived as a pounding, fluttering, or racing sensation.