Suppose the government imposes a tax of 10 percent on the first $40,000 of income and 20 percent on all income above $40,000 . What are the tax liability and the marginal tax rate for a person whose income is $50,000?
a. 12 percent and 20 percent, respectively
b. 12 percent and $50,000 . respectively
c. $6,000 and 12 percent, respectively
d. $6,000 and 20 percent, respectively
d
You might also like to view...
An increase in the demand for washing machines might be caused by
A. a decrease in the number of buyers. B. an expected increase in the price of washing machines. C. a decrease in the price of washing machines. D. an expected decrease in the price of washing machines.
Smart phones are becoming less expensive as new technology reduces the cost of production. In a supply and demand model, explain the effects of the technological innovations and their effect on the quantity of smart phones
What will be an ideal response?
Capital flows deal with:
A) buying and selling of newly produced final goods and services among countries. B) buying and selling of existing real and financial assets among countries. C) buying and selling of only domestic final goods and services. D) none of the above.
A market achieves allocative efficiency when: a. total surplus is at its maximum
b. consumer surplus is at its minimum. c. demand is perfectly elastic. d. market concentration is maximized.