Suppose a person with an income of $20,000 pays a tax of $2,000 . If the tax is progressive, then how large of a tax will a person with an income of $40,000 pay?
a. Exactly $2,000.
b. Between $2,000 and $4,000.
c. Exactly $4,000.
d. More than $4,000.
d
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The U.S. trade deficit has been mainly caused by:
A. unfair trade restrictions imposed by other countries on imports. B. production of inferior goods in the U.S. C. cheap labor in other countries. D. a low rate of national saving.
The figure above shows the marginal revenue and long-run cost curves for a perfectly competitive firm. All other firms in the industry have identical curves. Which of the following statements is TRUE?
A) The firm's average cost exceeds the price. B) Over time, firms will enter this industry. C) The firm is earning economic profit. D) None of the above is true.
An excise tax on gasoline is regressive if
a. rich people buy more gasoline than poor people. b. the demand for gasoline is elastic. c. the tax causes people to buy less gasoline. d. poor people spend a larger portion of their incomes on gasoline than rich people.
What are taxes payable for the Equity and debt firm? ALL EQUITY EQUITY AND DEBT Anticipated operating income $1,000,000 $1,000,000 Interest -- $200,000 Earnings before tax $1,000,000 $800,000 Tax at 30% $300,000 $- Earnings after tax $700,000 $ Combined debt and equity income (interest plus earnings after tax) $700,000 $
A. $240,000 B. $0 C. $560,000 D. $300,000