Hu earns $120,000 per year. He is charged a 20% tax on the first $80,000 he earns. He is charged a 30% tax for any income he earns between $80,000 and $200,000. Approximately what is his average tax rate?
a. 10%
b. 23%
c. 40%
d. 54%
b. 23%
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Generally, the longer the maturity on a bond, the lower the interest rate
a. True b. False
In the long run,
a. fiscal policy has no effect on the labor force participation rate. b. lower tax rates can lower the labor force participation rate. c. less generous transfer payments can raise the labor force participation rate. d. higher tax rates can raise the labor force participation rate. e. None of the above
The productivity of the agriculture sector (of the economy) increases dramatically. A likely consequence is:
A) increased resources flowing into the agriculture sector. B) an increase in the supply of foodstuffs and lower prices for foodstuffs. C) an increase in the total revenue (farmers' receive) from selling foodstuffs, assuming the demand for their products is elastic. D) a decrease in the total revenue (farmers' receive) from selling foodstuffs, assuming the demand for their products is inelastic. E) none of the above
After getting a raise at work, Jasper now regularly buys steak instead of chicken. Which factor of demand has influenced Jasper's demand for steak?
A. Price of a substitute good B. Income C. Preferences D. Price of a complementary good