Consider two people, Sandy Roos, who earns $25,000 . and Gary Behrman, who earns $50,000 . If the flat-tax rate is 20 percent, then
a. the government collects a total of $20,000
b. Gary pays twice the tax amount Sandy pays
c. Gary pays three times the tax amount Sandy pays
d. Gary and Sandy pay exactly the same tax amount
e. Gary pays $15,000 in taxes
B
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The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the producer surplus?
A) area A + area B + area C B) area A + area F C) area B + area C + area D + area F D) area C + area D + area E + area G E) area F
The marginal social cost of producing the last unit of a good is $1.10 while the consumers' willingness to pay for the last unit is $0.80. The deadweight loss from the production of the last unit of the good in equilibrium is ________
A) $1.10 B) $1.90 C) $0.50 D) $0.30
In this type of arrangement, any balances above a certain amount in a corporation's checking account at the end of the business day are "removed" and invested in overnight securities that pay the corporation interest
This innovation is referred to as a A) sweep account. B) share draft account. C) removed-repo account. D) stockman account.
If the supply curve does not shift, an increase in demand results in a(n)
a. increase in equilibrium price and a decrease in equilibrium quantity b. decrease in equilibrium price and a decrease in equilibrium quantity c. increase in equilibrium price and an increase in equilibrium quantity d. decrease in equilibrium price and an increase in equilibrium quantity e. increase in supply