Amanda works as an industrial designer. her adjusted gross income (agi) is $60,000. her gross pay is reduced by $300 to arrive at this amount. what is this amount of $300 called? a. credit b. expense c. deduction d. tax

Deduction

Explanation:

If Amanda's adjusted income is $60,000 after her gross pay is reduced by $300 to arrive at the amount, this means her initial pay is equal to adjusted income + reduction in gross pay i.e

Initial pay = $60,000+$300

Initial gross pay = $60,300

This initial gross pay is reduced by $300 to arrive back at $60,000 and since there is a reduction in the amount by $300 in the gross pay, this amount of $300 reduction is known deduction since deduction means removal of a particular amount of money (which is always a small amount of money compare to the gross) from a gross pay

answer; is usually (less than) the socially optimal level of consumption;

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30