Suppose a country imposes a lump-sum income tax of $5,000 on each individual in the country. What is the average income tax rate for an individual who earns $40,000 during the year?
a. 0%
b. 10%
c. More than 10%
d. The average tax rate cannot be determined without knowing the entire tax schedule.
c
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An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they do not classify clients into different risk types according to their claim history c. they classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
The aggregate demand curve is downward sloping
a. True b. False Indicate whether the statement is true or false
Employers and workers in the protected industry know that the consequences of protection are principally:
a. lower prices for their output, lower profits for owners, and lower wages for workers. b. higher prices for their output, lower profits for owners, and lower wages for workers. c. higher prices for their output, lower profits for owners, and higher wages for workers. d. lower prices for their output, higher profits for owners, and higher wages for workers. e. higher prices for their output, higher profits for owners, and higher wages for workers.
Publicly provided health insurance for the poor will
A. lower the price of health care to the non-poor and increase the total amount of health care consumed. B. increase the total amount of health care consumed. C. lower the price of health care to the poor. D. lower the level of health care consumed by the poor.