Which of the Following Is Not a Barrier to Income

question 31

Multiple Choice

Which of the following is not a barrier to income shifting among family members?

• A) The assignment of income doctrine
• B) Net unearned income for children 18 and younger taxed at parents' marginal tax rates
• C) Elimination of preferential tax rates (on dividends and long-term capital gains) for dependents
• D) Two of the above

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Definitions:

Total Cost

The aggregate cost of all inputs used in the production of goods or services, including fixed and variable costs.

Purely Competitive Seller

A seller in a market where there are many sellers and buyers, the product is standardized, and no single seller can influence the market price.

Shut Down

A temporary closure of a business or operation.

Marginal Cost

The expenditure required to produce one more unit of a product or service.