Question

Wealth: A. Tends to be distributed much less equally than income. B. Is the market value...

Wealth: A. Tends to be distributed much less equally than income. B. Is the market value of assets. C. All of the above. D. Represents a stock of potential purchasing power.

Suppose Mr. Lee has total income of $120,000, has taxable income of $90,000, and pays $30,000 in taxes. Considering the information presented, what is Mr. Lee's effective tax rate? A. 66.7 percent. B. 25 percent. C. 72 percent. D. 33.33 percent.

If the percentage of income paid in taxes increases as income rises, then the tax system is: A. Regressive. B. Progressive. C. Marginal. D. Nominal.

If Alejandra makes $46,000 per year as a nurse and pays $7,000 in taxes while Emily makes $46,000 per year as a high school teacher and pays $6,500 in taxes, this is an example of: A. Horizontal inequity. B. Marginal inequity. C. A flat tax. D. Vertical inequity.

Free trade results in reduced prices and increased consumption. True False

If tax elasticity of supply is 0.8 and tax rates increase by 10 percent, the quantity of labor supplied would: A. Decrease by 1.25 percent. B. Decrease by 8 percent. C. Increase by 1.25 percent. D. Increase by 8 percent.

By the year 2030 in the United States there will be ____ workers for every retired person. A. 8. B. 1. C. 4. D. 2.

Homework Answers

Answer #1

1. C. All of the above
(All the statements represents wealth.)

2. B. 25 percent.
(Effective tax rate = (30,000/120,000)*100 = 25%)

3. B. Progressive.
(As tax paid increases with income then tax is progressive.)

4. A. Horizontal inequity
(As they are earning same but paying different taxes so there is horizontal inequity.)

5. True
(With free trade each country can specialize in the good of its comparative advantage which reduces prices and increase consumption.)

6. D. Increase by 8 percent
(Elasticity = Percentage change in labor supply/Percentage change in tax rates.
So, Percentage change in labor supply = (0.8)*10 = 8%)

7. D. 2.
(There will be 2 workers for every retired person by 2030 in the US)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consumers change their purchases and move ALONG the same consumption function when: Their income changes Their...
Consumers change their purchases and move ALONG the same consumption function when: Their income changes Their tastes change The price level changes All of the above.       12) If MPC is .75 then if consumer income rises by $10,000 we would predict that consumption will: A. rise by $7500 while savings fall by $2500. B. fall by $2500 while savings rise by $7500. C. rise by $7500 while savings rise by $2500. D. fall by $2500 while savings fall by...
26. If the income elasticity of demand is -0.80 and the quantity demanded increases by 10...
26. If the income elasticity of demand is -0.80 and the quantity demanded increases by 10 percent as a result of a change in income, income must be a. increased by 8 percent b. increased by 80 percent c. decreased by 8 percent. d. decreased by 12.5 percent. 27. When the demand is unitary a. The marginal income is zero. b. the percentage change in the amount is equal to the percentage change in the price. c. An increase in...
[16] Over the last 25 years the dollar amount of government expenditures has been: A) increasing....
[16] Over the last 25 years the dollar amount of government expenditures has been: A) increasing. B) decreasing. C) relatively constant. D) fluctuating widely up and down. [17] Which of the following is a public good? A) A lighthouse. B) A private hospital. C) A commercial airliner. D) A corporation's charitable redevelopment of a city neighborhood. [18] A good or service that is provided for all of society, and no one is excluded from its use, is called: A) a...
1.If the substitution effect is larger than the income effect, what will be the labour-supply response...
1.If the substitution effect is larger than the income effect, what will be the labour-supply response to an increase in the income-tax rate? (Recall that income taxes are a percent of income, not a fixed sum.) A. Labor supply will remain unchanged. B. Labor supply will change ambiguously. C. Labor supply will increase. D. Labor supply will decrease. 2. Suppose your firm produces according to a function in which capital and labour are perfect compliments. The wage rate is currently...
Corporation A owns 10% of Corporation C. The marginal tax rate on non-dividend income for both...
Corporation A owns 10% of Corporation C. The marginal tax rate on non-dividend income for both A and C is 21%. Corporation C earns a total of $200200000 before taxes in the current year, pays corporate tax on this income and distributes the remainder proportionately to its shareholders as a dividend. In addition, Corporation A owns 40% of partnership P that earns $500200000 in the current year. Given this fact pattern, answer the following questions: a. How much cash from...
Question 7 Excise taxes are different than income taxes because they are applied to tobacco and...
Question 7 Excise taxes are different than income taxes because they are applied to tobacco and alcohol purchases. Select one: True False Question 8 If you are a married taxpayer supporting a spouse with a very low income Select one: a. you must be the one to claim all tax credits. b. you are entitled to a dependent partner tax deduction. c. you are entitled to a spousal or common-law partner tax credit. d. your spouse will not be able...
6- Suppose you paid a tax of $10 on an income of $100, $25 on an...
6- Suppose you paid a tax of $10 on an income of $100, $25 on an income of $200 and $60 on an income of $300. This is an example of a: (a) flat tax; (b) regressive tax; (c) inverse tax; (d) progressive tax. 7- Even under the best of times, the unemployment rate never drops to zero because: (a) such a drop would cause deflation; (b) there will always be children and retirees unwilling to work; (c) structural unemployment...
Under which of the following conditions would people desire to borrow the most? A. the nominal...
Under which of the following conditions would people desire to borrow the most? A. the nominal rate of interest is 4 percent and the inflation rate is 2 percent. B. the nominal rate of interest is 5 percent and the inflation rate is 2 percent. C. the nominal rate of interest is 6 percent and the inflation rate is 1 percent. D. the nominal rate of interest is 7 percent and the inflation rate is 1 percent. E. the nominal...
Record Payroll Expense and Payroll Tax Expense The following totals for the month of September were...
Record Payroll Expense and Payroll Tax Expense The following totals for the month of September were taken from the payroll register of Mindless Company. Use this information to answer questions 6 and 7. Salaries                           $24,000       Federal income taxes withheld      5,000 FICA taxes withheld                       1,100       Federal Unemployment Taxes            64 State Unemployment Taxes              432 6. What is the journal entry to record the monthly payroll expense on September 30? a. Increase Salaries and Wages Expense $24,000; Decrease...
KBC, Inc. has the financial profile illustrated below. Income statement: Sales: 222,300 Costs: 133,000 Taxable income:...
KBC, Inc. has the financial profile illustrated below. Income statement: Sales: 222,300 Costs: 133,000 Taxable income: 89,300 Taxes (34%): 30,362 Net income: 58,938 Tax rate: 34% Dividend paid: 15,500 Balance Sheet: Assets: 510,600 Debt: 100,500 Equitity: 410,100 Total: 510,600 Next year, Margins (%) will hold steady, and Assets grow proportionally with Sales. Debt will remain unchanged. ABC intends to maintain the same constant dividend payout ratio (dividend as a percent of Net Income) as this year. Next year’s sales are...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT