The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000 . Karen paid $6,000 in taxes. What were her marginal and average tax rates?
a. 20 percent and 12 percent, respectively
b. 20 percent and 15 percent, respectively
c. 10 percent and 12 percent respectively
d. 10 percent and 15 percent respectively
a
You might also like to view...
Decisions regarding purchases and sales of government securities by the Fed are made by the:
a. Federal Deposit Insurance Commission (FDIC). b. Discount Committee (DC). c. Federal Open Market Committee (FOMC). d. Federal Funds Committee (FFC).
According to the text, the AT&T corporation was deregulated primarily by
a. requiring that competing companies have access to AT&T's facilities b. declaring AT&T the legitimate monopoly of telephone service in the United States c. creating a special Telephone Advisory Commission d. ending all government regulations regarding the domestic telephone industry e. requiring AT&T to share patents with competitors
The government is considering levying a tax on the pollution generated from two electric power plants (Plant A and Plant B). Plant A is located in a city with a high density of population, and Plant B is located in the rural area with a low density of
population. The government should A) levy the same tax per unit of pollution on both plants. B) levy a higher tax per unit of pollution on Plant A because of its higher economic damage. C) levy a higher tax per unit of pollution on Plant B because of its lower economic damage. D) tax only Plant A but not Plant B because Plant B generates less revenue.
Answer the following questions true (T) or false (F)
1. An increase in the labor force shifts the production possibilities frontier inwards over time. 2. If additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be bowed outward (concave). 3. On a diagram of a production possibilities frontier, opportunity cost is represented by the production possibilities frontier shifting outward.