Question 4Select the information you need from the following figures and calculate the nationalincome for the year shown:Government Spending R18 000Depreciation R6 000Investment spending R35 000Net foreign spending R12 000Indirect taxes R14 500Net factor payments (R4 000)Consumer spending R30 000Subsidies R4 000 Tax paid at different income levelsR10 000R2 50025%R20 000R30 000Taxation AR40 000R5 000R7 500R10 000X25%25%(a) Calculate the value for X in the table:i.25%ii. 30%iii. 35%Tax paid at different income levelsR10R2 500Y000(c) The type of taxation applicable to taxation A is:i. proportional.ii. progressive.iii. regressive.R20000(d) The type of taxation applicable to taxation B is:i. proportional.ii. progressive.iii. regressive.R30000(b) Calculate the value for Y to complete the table:i. 25%ii. 50%iii. 40%R40000TaxationBR7 000R12 000R18 00035%40%45%(e) The Smiths have an income of R40 000. They pay R5 000 medical expenses and are allowed

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Answered: Question 4 Select the information you…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 4
Select the information you need from the following figures and calculate the national
income for the year shown:
Government Spending R18 000
Depreciation R6 000
Investment spending R35 000
Net foreign spending R12 000
Indirect taxes R14 500
Net factor payments (R4 000)
Consumer spending R30 000
Subsidies R4 000

Tax paid at different income levels
R10 000
R2 500
25%
R20 000
R30 000
Taxation A
R40 000
R5 000
R7 500
R10 000
X
25%
25%
(a) Calculate the value for X in the table:
i.
25%
ii. 30%
iii. 35%
Tax paid at different income levels
R10
R2 500
Y
000
(c) The type of taxation applicable to taxation A is:
i. proportional.
ii. progressive.
iii. regressive.
R20
000
(d) The type of taxation applicable to taxation B is:
i. proportional.
ii. progressive.
iii. regressive.
R30
000
(b) Calculate the value for Y to complete the table:
i. 25%
ii. 50%
iii. 40%
R40
000
Taxation
B
R7 000
R12 000
R18 000
35%
40%
45%
(e) The Smiths have an income of R40 000. They pay R5 000 medical expenses and are allowed

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