With a tax of $4,000 on $24,000 taxable income, the average tax rate is
A. 16.67 percent
B. 20 percent
C. 23.45 percent
D. 25 percent
A. 16.67 percent
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The Business Cycle Dating Committee defines a recession as
A) a significant decline in activity visible in industrial production, employment, real income, and wholesale/retail trade lasting more than a few months. B) two consecutive quarters of declining real GDP. C) a significant decline in inflation and unemployment lasting more than a few months. D) two consecutive quarters of declining nominal GDP.
When promoting average cost pricing, regulators
A) include what they consider to be a normal rate of return on investment. B) encourage firms to produce at the output level where price equals marginal cost. C) fail to consider a return to investors, so regulated firms often have a hard time raising investment funds. D) inflate costs so much that price ends up as large as would prevail under unregulated monopoly.
Suppose an economy's production consists only of corn and soybeans. In 2010, 20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel. In 2009, the price of corn was $2 per bushel and the price of soybeans was $1 per bushel. Using 2009 as the base year, it follows that, for 2010,
a. nominal GDP is $50, real GDP is $100, and the GDP deflator is 50. b. nominal GDP is $50, real GDP is $100, and the GDP deflator is 200. c. nominal GDP is $100, real GDP is $50, and the GDP deflator is 50. d. nominal GDP is $100, real GDP is $50, and the GDP deflator is 200.
The "butterfly effect" describes a situation in which a minor change in input (e.g., a butterfly flapping its wings in one part of the world) can have a major effect on output (e.g., a windstorm developing in another part of the world). This aspect of chaotic systems illustrates their property of:
a) The reiterative feedback loop. b) Linearity. c) Preordained periodic behavior. d) The fractionation of outputs.