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

Question

Quizplus · Accepted Answer

The reduction in Caroline's taxable income is an incentive for her to donate to the Salvation Army, as it allows her to potentially lower her tax liability.

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