Under a negative income tax program, if a minimum income is set at $16,000 for a family of four and the tax rate is 25%, a family earning $8,000 would have an after tax income of
a. $16,000
b. $8,000
c. $22,000
d. $6,000
e. $12,000
C
You might also like to view...
By the first years of the 21st century, the rate of inflation in the United States had fallen to between ________ percent
A) 1 and 2 B) 4 and 5 C) 5 and 6 D) 8 and 10
A consumer is in equilibrium, that is, a consumer is maximizing her utility when marginal utility and price are equal for each of the goods the consumer purchases
Indicate whether the statement is true or false
During the 2000s, the Federal government's deficit
a. moved from large deficits to even larger deficits. b. changed little as a percent of GDP. c. moved from large surpluses to large deficits. d. rose largely as a result of large tax cuts in 2001 and 2004. e. both c and d.
An 18 percent increase in the price of small cars results in a 10 percent expansion in the quantity supplied. The supply elasticity in this range equals ________
A) 9/5 B) 5/9 C) 7/10 D) 4/10