The effective tax rate refers to the actual taxes paid as a percentage of taxable income.
Answer the following statement true (T) or false (F)
False
The effective tax rate is the tax rate paid as a percentage of all income received; so if Paul earns $100,000 and pays $12,000 in taxes, his effective tax rate is 12 percent.
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Movements in GDP
A) differ greatly from movements in GNP. B) do not differ greatly from movements in GNP. C) are not allowed to differ at all from movements in GNP by definition. D) need to be inflation adjusted in order to match movements in GNP. E) are not relevant to an examination of national income.
The natural rate of interest is a __________ rate that __________ inflationary expectations
A) nominal; includes B) nominal; excludes C) real; includes D) real; excludes
A decrease in demand will result in a(n)
a. increase in equilibrium price and quantity b. decrease in equilibrium price and quantity c. decrease in equilibrium price and an increase in equilibrium quantity d. increase in equilibrium price and a decrease in equilibrium quantity e. change in equilibrium price and quantity only if supply changes too
Which of the following expenditures would not be included in GDP?
a. Purchase of a new lawnmower. b. Purchase of a silver cup previously sold new in 1950. c. Purchase of a ticket to the latest movie. d. All of these would be counted in GDP.