Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on all income above $70,000. Family A has income of $100,000 while Family B has income of $40,000. The marginal tax rates faced by the two families are
A) 40 percent on A and 10 percent on B.
B) 40 percent on A and 20 percent on B.
C) 30 percent on A and 20 percent on B.
D) 30 percent on A and 30 percent on B.
Answer: B
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Which one of the following is not an accurate description of the activities in which labor unions engage?
A) Control competition among workers for jobs. B) Encourage consumers to purchase union-made products exclusively. C) Enforce seniority criteria when employers are contemplating layoffs. D) Help workers compete against corporate employers. E) Protect workers against arbitrary treatment by management.
The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product
A) is sometimes greater than and other times less than B) equals C) is greater than D) is less than
Suppose the nation is in a recession. As a result, the current macroeconomic equilibrium occurs along the flat portion of the aggregate supply curve. A moderate increase in aggregate demand is likely to
A. increase the equilibrium price level with little effect on equilibrium real GDP. B. increase equilibrium real GDP with little effect on the price level. C. cause the price level to fall. D. decrease employment.
In a perfectly competitive industry, the firm's marginal revenue curve is
A. vertical. B. downward sloping. C. horizontal. D. upward sloping.