Mr. Smith earns $100,000 per year. Each year he spends $50,000 and saves $50,000. He pays a 5 percent sales tax on all of his spending. Assuming the sales tax is the only tax he pays, his average tax rate out of his income is
A) 0 percent.
B) 2.5 percent.
C) 3.5 percent.
D) 5.0 percent.
B
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Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars Sold Trucks SoldLarry105Joe99Ralph312Based on last month's data, Ralph's opportunity cost of selling a truck is selling:
A. 4 cars. B. 1/4 of a car. C. 3 cars. D. 1/3 of a car.
If, in a competitive market, marginal benefit is greater than marginal cost
A) the quantity sold is less than the equilibrium quantity. B) the net benefit to consumers from participating in the market is greater than the net benefit to producers. C) the government must force producers to lower price in order to achieve economic efficiency. D) the quantity sold is greater than the equilibrium quantity.
Expansionary fiscal policy, other things being equal, will tend to: a. increase interest rates. b. increase investment
c. increase net exports. d. all of the above
When online seller Amazon sets the default mail option as two-day mailing instead of the free-shipping option, it is employing:
A. a RECAP. B. a nudge. C. a push. D. a tax.