Suppose the tax rate on the first $10,000 of income is 0 percent; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on income over $60,000. Family X has an income of $55,000. What is the tax liability of Family X?
A. $6,600
B. $16,500
C. $3,400
D. $7,500
Answer: D
You might also like to view...
Today's Federal Reserve bank notes promise to pay the bearer
A) nothing. B) a fixed quantity of gold. C) a variable quantity of gold. D) a specific interest rate. E) a variable interest rate.
If a pharmaceutical firm is researching ways to improve its heartburn medicine and discovers a technique that will improve its allergy medicine, one could conclude that economies of scope exist in that industry
Indicate whether the statement is true or false
Any country with highly attractive domestic investment opportunities and a low savings rate will tend to
a. run a current account deficit that is equal to its capital account surplus. b. run a current account surplus deficit over a long period. c. tend to be relatively poor (compared with other countries). d. run a current account deficit.
Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that
A) the law of supply has been violated. B) the demand for swimming pool maintenance services has increased. C) the supply of swimming pool maintenance services has decreased. D) swimming pool maintenance services are becoming more technologically advanced.