Final answer:
An exemption is when someone is not required to follow a specific rule or obligation, often reducing taxable income or being freed from certain regulations.
Step-by-step explanation:
An exemption is a term used to describe a situation where an individual or entity is freed from being required to follow a certain rule, obligation, or payment that would otherwise apply. In the context of taxes, an exemption can refer to a monetary exclusion that reduces taxable income. Exemptions can also be found in other areas such as law and social policies, where certain individuals or groups may be exempt from certain regulations or requirements.