By donating $1,000 to the Salvation Army, Caroline reduced her taxable income. To Caroline, the reduction in her taxable income is
A) a marginal benefit.
B) a marginal cost.
C) an incentive.
D) an opportunity cost.
E) the margin.

Question

Quizplus · Accepted Answer

The reduction in taxable income serves as an incentive for Caroline to donate, as it provides a financial benefit in the form of tax savings.

By Donating $1,000 to the Salvation Army, Caroline Reduced Her