Which of the Following Statements Is TRUE

question 82

Multiple Choice

Which of the following statements is TRUE?

• A) A growing economy should see a decline in relative poverty but not in absolute poverty.
• B) A growing economy should see a decline in absolute poverty but not in relative poverty.
• C) A growing economy should see a decline in both absolute and relative poverty.
• D) A growing economy is usually unrelated to changes in either absolute or relative poverty.

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Definitions:

Taxable Income

The portion of income that is subject to taxation according to the laws and regulations of the taxing authority.

Standard Deduction

A fixed dollar amount that reduces the income on which you are taxed, varying by filing status and adjusted each year for inflation.

Joint Return

A combined tax return filed by married partners or certain partners in a civil union, pooling their incomes and deductions.

Taxable Income

Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.