Sabrina is a college professor in Houston, Texas who earns a salary of $95,000. She is single, just put down $25,000 on a new townhouse, and has no children. Explain if Sabrina has any way of reducing her payroll taxes or her personal income tax
What will be an ideal response?
Sabrina has no way of reducing payroll taxes (Social Security tax and Medicare tax) unless she takes a cut in salary. She can reduce her personal income tax by claiming her $3,950 personal exemption, she can deduct her mortgage interest from the mortgage she pays on her new townhouse, she can donate to charity and claim those donations as deductions, and she can deduct any contributions she may be able to make to a pension or retirement plan.
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a. their ownership of stocks in commercial corporations. b. their ownership of real assets received in foreclosures on loans to households. c. the fees charged for holding and servicing checking accounts. d. the difference between interest paid on deposits and interest received on loans. e. the difference between the cost of creating new money and the interest paid on loans.
Three business people meet for lunch at an Indian restaurant. They decide that each person will order an item off the menu, and they will share all dishes. They will split the cost of the final bill evenly among each of the people at the table. When the food is delivered to the table, each person faces incentives similar to the
a. consumption of a common resource good. b. production of a public good. c. consumption of a club good. d. production of a private good.
Induced expenditure is the portion of planned aggregate expenditure that:
A. depends on output. B. equals aggregate output. C. equals planned spending. D. equals autonomous expenditure.
Of the English-owned joint stock companies that operated in North America, which was the only one to survive longer than 20 years?
a. The London Company b. The New Plymouth Company c. The Hudson Bay Company d. The Massachusetts Bay Company