Refer to the information provided in Table 19.4 below to answer the question(s) that follow.Table 19.4Total IncomeTotal Taxes$10,000 $1,000 20,000 2,400 30,000 4,500 40,000 8,000Related to the Economics in Practice on page 393: Refer to Table 19.4. At an income level of $20,000, the average tax rate is
A. 1.2%.
B. 8.3%.
C. 12%.
D. 24%.
Answer: C
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Increases in the general price level are primarily a macroeconomic issue
a. True b. False
An investor will diversify his portfolio to reduce risk
a. True b. False Indicate whether the statement is true or false
Why is fiscal policy less effective in an open economy than in a closed economy?
a. Expansionary fiscal policy raises demand for imports, which reduces aggregate demand. b. Expansionary fiscal policy raises interest rates, which raises the value of the currency, and reduces aggregate demand. c. Expansionary fiscal policy raises the value of the currency, which reduces demand for exports. d. Expansionary fiscal policy has all the above effects.
If the CPI rises from 206.7 to 212.7 between two consecutive years, by how much has the cost of living changed between these two years?
A) The cost of living has increased by 6%. B) The cost of living has increased by 2.9%. C) The cost of living has increased by 12.7%. D) The cost of living has decreased by 6%.