Interest on State and Local Bonds Is Subject to Neither

question 42

True/False

Interest on state and local bonds is subject to neither the Federal income tax nor the Federal estate tax.

---

Definitions:

Variable Inputs

Variable inputs in production are those inputs that change in quantity with the level of output, such as raw materials and labor.

Inputs

The resources such as labor, materials, and capital that are used in the production process to create goods and services.

AFC

Acronym that stands for Average Fixed Cost, the fixed costs of production divided by the quantity of output produced.

ATC

Average Total Cost, which is the total cost of production divided by the number of goods produced.