Consider two people, Sandy Smith, who earns $25,000 . and Gary Carver, who earns $50,000 . If the government has decided to tax everyone's first $25,000 at 20 percent and everyone's second $25,000 at 40 percent, then:
a. Gary and Sandy both pay taxes of the same percentage of total income.
b. Gary and Sandy pay the same amount of taxes.
c. Gary pays twice the tax amount Sandy pays.
d. Gary pays three times the tax amount Sandy pays.
e. Sandy does not pay taxes.
d
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With a rent ceiling set below the equilibrium rent, i. all renters are able to rent apartments at a lower rent. ii. there is a shortage of apartments. iii. the quantity of apartments supplied does not change because buildings cannot be moved
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Suppose workers expect the inflation rate to be 3.6 percent and they receive a nominal wage increase of 7.5 percent. If the actual inflation rate turns out to be 2.8 percent, workers will receive a lower real wage than expected
a. True b. False Indicate whether the statement is true or false
Free market economies
a. often have dirty air and rivers. b. acting on their own do not do enough to efficiently deal with externality problems. c. while not protecting the environment automatically do offer a powerful tool that may be used for that purpose. d. All of the above are correct.
Economic growth can be measured by:
(a) The Consumer Price Index; (b) The National Household Quarterly Survey; (c) Gross Domestic Product; (d) Marginal Propensity to Consume.