Homer earns $10,000 per year. Each year he spends $5,000 and saves $5,000. He pays a 5 percent sales tax on all of his spending. Assuming the sales tax is the only tax he pays, his average tax rate out of his income is
A) 0 percent.
B) 2.5 percent.
C) 3.5 percent.
D) 5.0 percent.
Answer: B
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A country's unemployment rate fell from 6% to 5% during a year. If its total population, capital stock and output remain unchanged, ________
A) its income per worker will increase B) its income per capita will increase C) its income per worker will fall D) its income per capita will fall
A firm's short-run average total cost curve is parallel to its short-run average variable cost curve
Indicate whether the statement is true or false
Whenever individuals think about investing money in stocks, bonds, or real estate, they must consider:
A. the trade-off between future value and expected value. B. the opportunity cost of the risk involved. C. the trade-off between risk and expected value. D. the opportunity cost of the expected value.
Which term refers to the profits that a firm receives from investing in a new technology?
a. Private benefits b. Social benefits c. Private externalities d. Positive externalities