Suppose the government taxes 10 percent of the first $40,000 of income and 20 percent of all income over $40,000 . Shahina paid $10,000 in taxes. What were her marginal and average tax rates?
a. 20 percent and 15 percent, respectively
b. 20 percent and 14 percent, respectively
c. 10 percent and 15 percent respectively
d. 10 percent and 14 percent respectively
b
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Given the annual rate of economic growth, the "rule of 72" allows one to
A. determine the growth rate of per capita GDP. B. calculate the size of the GDP gap. C. determine the accompanying rate of inflation. D. calculate the number of years required for real GDP to double.
Scarcity refers to the situation in which
A) unlimited wants exceed limited resources. B) a country's population is larger than its resource base. C) a nation's poverty level increases faster than its population. D) unlimited resources exceed limited wants.
Which of the following best describes efficiency in the demand and supply model?
a. The economy is receiving as much benefit as possible from its scarce resources and all the possible gains from trade have been achieved. b. The economy is receiving as much benefit as possible from its scarce resources but not achieving all the possible gains from trade. c. The economy is not receiving as much benefit as possible from its scarce resources but is getting all the possible gains from trade. d. The economy is not receiving as much benefit as possible from its scarce resources and not achieving all the possible gains from trade.
Answer the following statements true (T) or false (F)
1. Low birthrates in industrialized countries are a major concern for governments, reducing the number of potential soldiers and taxpayers to support social programs. 2. One of the world's greatest economic challenges over the coming decades will be to supply the resources that will be demanded, as living standards in poorer countries rise to rich- country standards. 3. Because better technology means that more output can be produced with the same amount of energy input, rising living standards in the future will not necessarily depend on using more energy. 4. Efficient energy usage in electricity generation often involves using a mix of energy inputs, some of which are much more expensive than others. 5. If per-capita energy usage has leveled off while per capita GDP has risen, then it must mean that each dollar of output produced required a larger amount of energy.