Full question:
Indicate whether the following statements are "True" or "False" regarding the concept of gross income.
a. While the Constitution grants Congress the power to tax income, it does not define the term.
b. The Supreme Court has held that there is no income subject to tax until the taxpayer has recovered the capital invested.
c. Economists measure income (economic income) by first determining the fair market value of the individual's net assets (assets minus liabilities) at the beginning and end of the year (change in net worth).
d. Accounting and tax rules regarding income are the same.
e. The accounting concept of income is founded on the realization principle.
f. Gross income is not limited to cash received.
Answers:
a. True
b. True
c. True
d. False
e. True
f. True
Explanation:
1.The constitution of the United States allows for power to tax income however it doesn't define tax.
2.income is not subject to tax until there is profit from capital invested as ruled by the Supreme Court of the United States
3. Measurement of income in Economics involves applying the concept of fair value to measure income at the beginning and end if the year and notice any changes that may have occurred
4. Accounting and tax rules regarding income are not the same. Accounting however complies with tax rules for accounting purposes.
5.the realization principle involves income earned or losses incurred(not necessarily received in cash or given out)
6.Gross income encompasses all(recognizable) earned income for the period(cash or not)
Answer: Charismatic authority
Explanation: Charismatic authority is a concept of power that is based on charisma of a leader, which means that the whole organisation of government and rule comes from the charisma of one person, rather than on legal grounds i.e authority or rather than some traditional way of ruling. In this way, the rules and system established in one of the commonly mentioned ways are usually violated, because the qualities of leaders and the resulting values determine the system and way of government.
Answer:
The correct answer is option B.
Explanation:
During the period of slowdown in the US economy, the government announced a program of tax rebates. This program classifies as a discretionary policy as it is planned by the government.
Tax rebates will lead to an increase in the disposable income of the consumer. This will cause the demand for goods to increase and further lead to an increase in consumer spending.
This is an example of an expansionary policy.
Five factors that spurred industrial growth in the late 1800's are Abundant natural resources (coal, iron, oil); Abundant labor supply; Railroads; Labor saving technological advances (new patents) and Pro-Business government policies. Several factors led to the rise of U.S. industrialization in the late 1800's.
Answer: Option (C)
Explanation:
Sedition is referred to as or known as the overt conduct, i.e. organization and speech, that is inclined toward the insurrection against already established orders. It often tends to includes the subversion of the constitution and also incitement of the discontent in regards, or the resistance against the established authority.
