Suppose you are making $50,000 per year and paying $5,000 per year in income taxes. You get a $10,000 per year raise and your income taxes are now $6,000 per year. Based on this information, the income tax system is
A) proportional.
B) progressive.
C) regressive.
D) bracketed.
Answer: A
You might also like to view...
If A and B are two disjoint sets, and "Pr" represents the probability, then Pr[A or B] will be:
a. unity. b. zero. c. Pr[A]+Pr[B]. d. Pr[A]-Pr[B].
If opening up international trade resulted in the U.S. importing ballpoint pens, what would tend to happen to the U.S. price of ballpoint pens? a. The domestic price will fall
b. The domestic price will rise. c. The domestic price will remain constant. d. It is impossible to predict the impact.
Fiat money
a. is worthless. b. has no intrinsic value. c. may be used as a medium of exchange, but is not legal tender. d. refers to highly liquid assets that do not serve as a medium of exchange.
A computer you are considering for your business would add $4,000 per year to your profit. It would cost $400 a year to buy a complete maintenance contract so that you would never have repair and upkeep expense. The obsolescence depreciation is 25% a year. The going market interest rate is 5%. Assume all costs and revenue occur at the end of the year. If the machine cost $12,000 to purchase, should you buy it?
What will be an ideal response?