Costas faces a progressive federal income tax structure that has the following marginal tax rates: 0 percent on the first $10,000 . 10 percent on the next $10,000 . 15 percent on the next $10,000 . 25 percent on the next $10,000 . and 50 percent on all additional income. In addition, he must pay 5 percent of his income in state income tax and 15.3 percent of his labor income in federal payroll
taxes. Costas earns $70,000 per year in salary and another $20,000 per year in non-labor income. What is his average tax rate, and what is his marginal tax rate on his salary?
a. His average tax rate is 17.19 percent, and the marginal tax rate on his salary is 55 percent.
b. His average tax rate is 50.23 percent, and the marginal tax rate on his salary is 70.3 percent.
c. His average tax rate is 53.63 percent, and the marginal tax rate on his salary is 70.3 percent.
d. His average tax rate is 55.79 percent, and the marginal tax rate on his salary is 70.3 percent.
b
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Economists who argue in favor of rapid deficit reduction claim that deficit reduction will
a. reduce crowding in, reduce interest rates, and increase AS. b. stimulate AD and productivity. c. trigger crowding in, increase investment, and increase AS. d. reduce crowding out, increase investment, and increase AS.
The GHG permitting requirements
a. are applicable to both mobile and stationary sources b. will not be in force until 2016 c. are part of the New Source Review requirements d. all of the above
Which of the following people would be considered unemployed?
(a) A person who stayed home to raise his children and now starts looking for a job. (b) A person who quits a job to return to school full time. (c) A person who is qualified to teach but is driving a bus until a teaching job is available. (d) A person who works two part-time jobs but is looking for a full-time job.
Discuss the determinants of a nation's exchange rate value for its currency in foreign exchange markets. What happens to a nation's balance of trade if the nation's currency appreciates? Why?
What will be an ideal response?