Dr. Rand earns $420,000 per year. He is charged a 20% tax on the first $100,000 he earns. He is charged a 30% tax for any income he earns between $100,000 and $250,000, and he is charged a 38% tax on anything he earns over $250,000. How do we find his average tax rate?
a. Add 20% of $100,000, 30% of $150,000, and 38% of $170,000, and then divide the total by $420,000.
b. Subtract 20% from 38%, divide the amount by $420,000, and then add 30% of $250,000.
c. Multiply $420,000 times 20%, 30%, and 38%, add them up and divide the total by three.
d. Add 20%, 30%, and 38%, divide by three, and multiply that amount times $420,000.
a. Add 20% of $100,000, 30% of $150,000, and 38% of $170,000, and then divide the total by $420,000.
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a. large number of sellers b. many versions of the product c. limited resource mobility d. few consumers e. market power
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a. forces of supply of and demand for currencies. b. governments with a trade surplus. c. governments with a trade deficit. d. IMF under the Bretton Woods Agreement.
Which of the following will shift the aggregate demand curve outward?
a. tax cuts and government spending cuts b. tax increases and government spending increases c. tax cuts and government spending increases d. tax increases and government spending increases