Maurice 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. Maurice earns $60,000 per year in salary and another $10,000 per year in non-labor income. What is his average tax rate?
a. 17.19 percent
b. 46.69 percent
c. 48.87 percent
d. 56.01 percent
b
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Figure 5-17
Which of the following statements about Figure 5-17 must be correct?
A. The consumer pays a higher dollar price per unit for good Y at A than at D. B. The consumer pays the same dollar price per unit for good Y at A and at B. C. The consumer pays a higher dollar price per unit for good X at D than at A. D. The consumer pays a higher dollar price per unit for good X at A than at C.
The Buda Agri Corporation is the sole employer in rural Hungary. In the labor market, Buda Agri is a
A) monopolistic competitor. B) perfect competitor. C) monopsony. D) monopoly.
Holding the level of prices fixed implies that a given increase in aggregate demand
A) will have a smaller effect on real GDP than would be the case if prices were more flexible. B) will have a larger effect on real GDP than would be the case if prices were more flexible. C) has the same effect on real GDP as when prices are more flexible. D) has a smaller effect on nominal GDP than when prices are more flexible.
Assume the central bank decides to lower the bank's reserve requirements. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the right. b. Start the analysis in the real credit market with demand for real credit shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the right. d. Start the analysis in the real credit market with supply of real credit shifting to the left. e. Start the analysis in the real credit market with supply of real credit shifting to the right.