Co=100 lo=90 Go=330 To=240 b=0,75 t=0,2 . What is the equilibrium level of income ? . What is the effect on of a $50 increase in government spending? C. What is the effect on of a $50 increase in autonomous taxation? d. If the full-employment level of income (Yfe) is 1000 and the government wishes to achieve it, by how much sh

Co=100 lo=90 Go=330 To=240 b=0,75 t=0,2 . What is the equilibrium level of income ? . What is the effect on of a $50 increase in government spending? C. What is the effect on of a $50 increase in autonomous taxation? d. If the full-employment level of income (Yfe) is 1000 and the government wishes to achieve it, by how much sh

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose George made $20,000 last year and that he lives in the country of Harmony. The way Harmony levies income taxes, all citizens must pay 10 percent in taxes on their first $10,000 in earnings and then 50 percent in taxes on anything else they might earn. Given that George earned $20,000 last year, his marginal tax rate on the last dollar he earns will be rate for his entire income will be and his average tax O 10 percent; 50 percent O 50 percent; less than 50 percent O 10 percent; less than 50 percent O 50 percent; 50 percent
The percentage of an increase in income that is taxed is: O a regressive tax. O the marginal tax rate. O the average tax rate. O a flat tax.
7. The tax imposed to Filipinos in order to generate the much needed reserve for debt servicing. O Duty Tax O Ad Valorem Tax Value Added Tax O Excise Tax 8. Which is NOT true about Taxation It is obligatory O It raises revenue It covers even inanimate objects O It covers even the minors
TRUE - OR - FALSE The distinctive characteristic of a progressive tax is that the dollars paid in taxes rise as income rises. O True O False
QUESTION 14 Assuming that the "equilibrium income" is $4,000 and the "full-employment" income is $8,000, which means a recessionary gap of $4,000, how much tax cut is needed to fill the gap if MPC is 0.50? O $7,000 O $5,000 O $3,000 O $4,000
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 30 billion cases of cola were sold every year at a price of $4 per case. After the tax, 23 billion cases of cola are sold every year; consumers pay $5 per case, and producers receive $2 per case (after paying the tax). The amount of the tax on a case of cola is $_________ per case. Of this amount, the burden that falls on consumers is $_________ per case, and the burden that falls on producers is $__________ per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers.
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5. Study Questions and Problems #5 True or False: The marginal tax rate is calculated using additional income, while the average tax rate is calculated using total income. True O False
The economy is characterized as: C=100+0.8Yd G=T =50 I=50-25i MS=200 P=1 Md=Y-25i Tax T=50 1. Is tax a lumpsump, specific, ad valorem or proportional tax? 2. What is the equilibrium income? 3. What is the total investment?
Today the federal government collects nearly O $1 billion a year in tax revenues. O $500 billion a year in tax revenues. O $1 trillion a year in tax revenues. O $4 trillion a year in tax revenues.
4. Computing and interpreting average tax rates In a hypothetical economy, Clancy earns $11,000, Eileen earns $22,000, and Hubert earns $33,000 in annual income. The following table shows the annual taxable income and tax liability for these three single individuals. For example, Clancy, who earns $11,000, owes $2,860 in taxes. Use the tax liability figures provided to complete the following table by computing the average tax rate for Clancy, Eileen, and Hubert with an annual income of $11,000, $22,000, and $33,000, respectively. Taxable Income Tax Liability Average Tax Rate Taxable Income (Dollars) (Dollars) (Percent) Clancy 11,000 2,860 Eileen 22,000 3,520 Hubert 33,000 3,630 The income tax system for this country is
G, 1 Economics