Refer to Table 18-10. A tax exemption is granted for the first $10,000 earned per year. Suppose you earn $75,000
a. What is the amount of taxes you will pay?
b. What is your average tax rate?
c. What is your marginal tax rate?
a. ($6,000 × 0.10 ) + ($14,000 × 0.15 ) + ($24,500 × 0.25 ) + ($20,500 × 0.30 ) = $600 + $2,100 + $6,125 + $6,150 = $14,975
b. approximately 20%
c. 30%
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GDP measured using current prices is called ________.
A. real GDP B. deflated GDP C. nominal GDP D. constant GDP
Why may equity finance be preferred to debt finance for developing countries?
A) A fall in domestic income automatically reduces the earnings of foreign shareholders without violating any loan agreement. B) There are laws insuring against any default with equity finance. C) The risk is shared between debtor and creditor with debt finance. D) The tax structure leaves equity finance unconstrained. E) Repayments are unaffected by falls in real income.
The economic expansion which began in 1933 was due to
A. the fact that business had hit bottom and was ready to rebound. B. The efforts of the Roosevelt Administration to stimulate the economy. C. Both the efforts of the Roosevelt Administration and the readiness of business to rebound. D. Neither the efforts of the Roosevelt Administration nor the readiness of business to rebound.
Along a production possibilities curve showing capital and consumption goods production, which of the following pairs are being held fixed?
A. Unemployment and capital goods production. B. Number of resources and technology. C. Composition of the economy's output and number of resources. D. Capital and consumption goods production.