EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 1, Problem 1.6P
A
To determine
To describe:
Find out the tax amounts paid the persons with given income levels, and determine the average tax rates for the provided income levels.
B
To determine
To describe:
Put on a graph the tax schedule and use it to estimate the marginal tax rates for the income levels given in part A.
C
To determine
To describe:
Find out the results for given three income levels and compare and contrast these results.
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Students have asked these similar questions
3) A tax on gasoline is proposed in order to raise money for the pollution-control activities of several public
agencies. The tax will be 10¢ per gallon, and last year 10.3 million gallons of gasoline were used by
motorists (this is strictly an illustrative number). Does this mean that we can anticipate S1,030,000 in
revenues from this tax? Explain and use a graph to answer this question.
Daniela had a gross income of $91,369 in 2010. What was her net income in 2010?
Use the income tax table below to answer the question.
2010 Federal Income Tax Brackets and Tax Rates (Canada)
Tax Brackets
Tax Rates
15% of taxable income less than or
equal to $40,970; plus
22% of taxable income greater
$40,970 to $81,941 than $40,970 and less than or
equal to $81,941; plus
$40,970 or less
26% of taxable income greater
$81,941 to $127,021 than $81,941 and less than or equal
to $127,021; plus
More than $127,021
29% of taxable income greater
than $127,021
Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in the table.
Income range
Tax rate
$0-$20,000
0%
$20,001–$39,000
31%
42%
$39,001-$70,000
$70,001+
50%
Use the table to calculate the average tax rate and marginal tax rate for each of the families. Where applicable, round your
answer to the nearest whole number.
Chapter 1 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 1.2 - Prob. 1MQCh. 1.2 - Prob. 2MQCh. 1.3 - Prob. 1TTACh. 1.3 - Prob. 2TTACh. 1.4 - Prob. 1TTACh. 1.4 - Prob. 2TTACh. 1.4 - Prob. 1MQCh. 1.4 - Prob. 2MQCh. 1.4 - Prob. 1.1MQCh. 1.4 - Prob. 1.2MQ
Ch. 1.5 - Prob. 1TTACh. 1.5 - Prob. 2TTACh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Prob. 10RQCh. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Prob. 1.5PCh. 1 - Prob. 1.6PCh. 1 - Prob. 1.7PCh. 1 - Prob. 1.8PCh. 1 - Prob. 1.9PCh. 1 - Prob. 1.10P
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