At a taxable income of $40,000 Mari's income tax is $7,400. When her taxable income rises to $45,000 her income tax is $8,400. Based on this information, what is Mari's marginal tax rate?
A) 18.7 percent
B) 39 percent
C) 10 percent
D) 30 percent
E) 20 percent
E
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Use the following information to answer the next question. Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or foregone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10% interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 each. Of the $75, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. What is the economic profit generated by Extreme Gaming in the first year?
A. $160,000 B. $280,000 C. $220,000 D. $155,000
For a borrower, an increase in the real interest rate
A) definitely reduces current consumption and increases future consumption. B) reduces current consumption and has an uncertain effect on future consumption. C) has an uncertain effect on current consumption and increases future consumption. D) has an uncertain effect on both current and future consumption.
A medical doctor who specializes in a particular field (e.g., surgery) generally earns more than a general practitioner because
a. of greater education and training requirements b. of differences in labor mobility c. a general practitioner is more likely to work in an urban area d. of discrimination e. a general practitioner treats a greater number of patients per day
When economists say the demand for a product has decreased, they mean
a. the demand curve has shifted to the left. b. the product price has increased, and as a consequence, consumers are buying less of the product. c. consumers are now willing and able to buy more of this product at each possible price. d. the demand curve has shifted to the right.