The nominal tax rate refers to the actual taxes paid as a percentage of taxable income.
Answer the following statement true (T) or false (F)
True
When an individual earns $100,000 and pays $12,000 in taxes, the nominal tax rate will be applied only to the portion of the income that is taxable; with a taxable income of $60,000, the nominal rate is 20 percent.
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Explain ways in which the government can remedy an externality
What will be an ideal response?
A horizontal merger between two firms occurs when:
a. the products of the merging firms were not related in any manner before the merger. b. one firm is a producer of products, and the other firm is a producer of services. c. one firm is a domestic firm, and the other is a foreign company. d. the firms stood in a buyer-seller relationship before the merger. e. the merger partners were competitors.
If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. Which of the following statements is correct?
A. Ana has both an absolute advantage and the comparative advantage in fudge. B. Ana has the comparative advantage in fudge, but Leo has the absolute advantage in fudge. C. Ana has the comparative advantage in toffee, but Leo has the absolute advantage in toffee. D. Leo has both the absolute advantage and the comparative advantage in fudge.
In the 1990s, Americans savings rate was _____________ than in the 1980s.
A. higher B. slightly higher C. lower D. the same as