Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 27, Problem 5RQ
To determine
National Income and Private Income.
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Students have asked these similar questions
how are consumption taxes different from income and property taxes?
2. Income taxes
The following table shows income tax rates in Econoland.
Annual Income
Tax Rate
Up to $50,000
10%
From $50,001 to $75,000
20%
Over $75,000
30%
This is an example of a
income tax.
Kevin, a resident of Econoland, currently works 20 hours a week and earns an annual income of $50,000. After paying income taxes, Kevin receives
per year.
If Kevin works an additional 10 hours a week (30 hours a week total), his annual income will be $75,000. After paying income taxes, Kevin will receive
per year. In other words, by working an additional 10 hours per week, Kevin will receive an additional
more than what he would
If Kevin works 10 more hours in a week (40 hours a week total), his annual income will further increase to $100,000. After paying income taxes, Kevin
per year. In other words, by working 10 more hours per week, Kevin will receive
receive if he works only 30 hours a week.
will receive
As Kevin works more, the additional amount he receives from working 10 more hours
.…
The government implements a negative income tax plan with a guaranteed minimum income of $5,000 and a phase-out rate for
payments of 50%.
Complete the following table by calculating the negative tax and total after-tax income for each family income given. (Note: Suppose that any income
above $10,600 would pay a positive tax.)
Family Income
(Dollars)
Negative Tax Total After-Tax Income
(Dollars)
(Dollars)
0
2,600
4,600
6,600
8,600
10,600
Chapter 27 Solutions
Economics (Irwin Economics)
Ch. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Prob. 3DQCh. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Prob. 6DQCh. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Prob. 10DQ
Ch. 27 - Prob. 11DQCh. 27 - Prob. 12DQCh. 27 - Prob. 13DQCh. 27 - Prob. 14DQCh. 27 - Prob. 1RQCh. 27 - Prob. 2RQCh. 27 - Prob. 3RQCh. 27 - Prob. 4RQCh. 27 - Prob. 5RQCh. 27 - Prob. 6RQCh. 27 - Prob. 7RQCh. 27 - Prob. 8RQCh. 27 - Prob. 9RQCh. 27 - Prob. 10RQCh. 27 - Prob. 1PCh. 27 - Prob. 2PCh. 27 - Prob. 3PCh. 27 - Prob. 4PCh. 27 - Prob. 5PCh. 27 - Prob. 6PCh. 27 - Prob. 7PCh. 27 - Prob. 8P
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Similar questions
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