If your taxable income was $40,000 and you paid $3,000 in federal income tax, what was your average tax rate?
Fill in the blank(s) with the appropriate word(s).
ATR = taxes paid/taxable income = $3,000/$40,000 = 7.5 percent
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When Pepsi is considering a price hike, it needs to consider how Coke may react. This situation is called:
a. mutual interdependence. b. price leadership. c. collusion. d. monopolistic competition.
If supply rises, what happens to equilibrium price and quantity?
What will be an ideal response?
Briefly explain one function of financial instruments that can make them very different from money.
What will be an ideal response?
Tasty Chicken has been buying its animal feed in the open market. It notices that about 10 percent of its purchases are watered down, so that the feed seems to weigh more than it actually does. To improve quality of its purchases, Tasty Chicken might consider:
A. going out of the chicken processing business. B. lobbying for new laws concerning water levels in feed. C. hiring an economist to see if the market is really competitive. D. moving to long-term contracts with specific feed producers.