Suppose the government imposes a tax of 10 percent on the first $40,000 of income and 20 percent on all income above $40,000 . What are the tax liability and the marginal tax rate for a person whose income is $30,000?
a. both are 10 percent
b. 10 percent and $2,000 . respectively
c. $3,000 and 10 percent, respectively
d. $3,000 and 20 percent, respectively
c
You might also like to view...
In analyzing human decision and action, economists assume that
A. there are no scarce resources in the economy. B. people's behavior reflects rational self-interest. C. scarcity is more important than choice. D. costs are more important than benefits.
Which of the following correctly identifies characteristics of land and capital?
A) Land and capital can both be rented and owned. B) Land is rented, whereas capital is owned. C) Land can be owned or rented, whereas capital can only be owned by a firm. D) Capital can be owned or rented by a firm, whereas land can only be owned by a firm.
Which of the following is not a characteristic of perfect competition?
a. Many small buyers. b. Different firms sell products with different features. c. Ease of entry into and exit from the market. d. Many small sellers.
Economists define the unemployed as individuals who are
A. working less than their desired amount of time. B. not currently working but are actively looking for work. C. not currently working. D. working but looking for a different job.