Consider two people, Sandy Roos, who earns $25,000 . and Gary Behrman, who earns $50,000 . If the government has decided to tax everyone's first $25,000 at 20 percent and everyone's second $25,000 at 40 percent, then Gary pays
a. $10,000 in taxes and Sandy pays $5,000 in taxes
b. $10,000 in taxes and Sandy pays $10,000 in taxes
c. $15,000 in taxes and Sandy pays $5,000 in taxes
d. $15,000 in taxes and Sandy pays $10,000 in taxes
e. $17,000 in taxes and Sandy pays $5,000 in taxes
C
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Floating exchange rates
A) systematically lead to much larger but less frequent short-run deviations from the absolute PPP. B) systematically lead to much larger and more frequent short-run deviations from the relative PPP. C) systematically lead to much smaller and less frequent short-run deviations from the relative PPP. D) systematically lead to much smaller but more frequent short-run deviations from the relative PPP. E) systematically lead to much smaller and less frequent short-run deviations from the absolute PPP.
Assume that the economy is in equilibrium when the real interest rate rises. Explain, step-by-step, how the components of expenditure adjust to bring the economy to its new equilibrium
What will be an ideal response?
In the 1920s, American (non-farm) labor benefited from all of the following except:
a. low unemployment rates. b. falling weekly work hours. c. legal limits on immigration. d. passage of federal minimum wage legislation.
When a firm is on the flat portion of its long-run ATC curve,
A. it is experiencing constant returns to scale. B. changing its firm size will not affect its total cost per unit. C. it is capturing the lowest average total costs possible in the industry. D. All of these are possibly true.