ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Government spending is divided into all of the following categories, except:
A) welfare spending
B) discretionary spending
C) mandatory outlays
D) interest payments
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- There are two individuals in a society. The federal income tax in this society is such that that the first $20,000 of income is taxed at 10% and income above that is taxed at 30%. The federal government allows taxes paid to local governments to be deducted. James earns a gross income of $40,000, and Jane earns a gross income of $65,000. Out of his income, James pays $1,000 in local taxes; out of her income, Jane pays $20,000 in local taxes. Which of the following statements is true? a. The federal tax system is proportional. b. James’ total (local + federal) tax bill is greater than Jane’s total tax bill. c. The federal tax system is regressive d. The federal tax system is progressive.arrow_forwardWhich of the following government programs are financed by payroll tax? a) Medicare, food stamps, and social security. b) Medicaid, disability insurance, and Medicare. c) Disability, social security, and food stamps. d) Social security, disability, and Medicaid.arrow_forwardWhich of the following government spending categories falls into the discretionary category SNAP payments (suuplemental nutrition assistance program, colloquially known as food stamps) medicaid payments O salaries of employees of the Bureau for Economic Analysis O social security paymentsarrow_forward
- What are the current guidelines for the TANF program? Identify the key requirements for who is eligible and the limits on it.arrow_forwardRoll over each income attribute, then match it with the income component it best describes. After needs Spent on needs Spent on luxuries Money income Post-taxes Pre-taxes Taxes change Savings Gross Income Disposable income Discretionary Incomearrow_forwardWhich of the following statements about the social insurance tax is correct? According to the book, the tax rate for the two programs combined is 7.65%. Self-employed individuals pay twice as much as salaried individuals. There is a $100,000 cap on the portion of income taxed for Medicare. Lower-income individuals are exempt from social insurance tax withholding. Employers pay the whole tax on behalf of their employees.arrow_forward
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