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Suppose the tax rate is 10% on the first $20,000 of taxable income, then 25% on the next $30,000, then 50% on all taxable income above $50,000. The government also provides a $4,000 exemption per family member. (a) Ben’s family has three members and earns $50,000 per year. Calculate the family’s marginal and average tax rates. (b) Jerry’s family has five members and earns $85,000 per year. Calculate the family’s marginal and average tax rates. (c) Compare the average tax rates for Ben’s and Jerry’s families. Is this tax system progressive, regressive or proportional?
Explain the effects of the increase in global demand for cell phones on the market for cell phones and on an individual cell-phone producer in the short run.
What is accounting equation? Please give an essay on accounting equation and give a good example on it, i need to develop a project on accounting equation.
Explain how the strength of the economy as a whole could affect the marginal benefits also the marginal costs associated
What is the difference between the index number for the year you were born and the Consumer Price Index for January of 2012.
Suppose James has utility over wealth given by u(w) = w 1 2 . Putting utility on the y-axis and wealth on the x-axis, use a graph to show why James would rather have $100 for sure instead of a gamble where he gets $20 20% of the time and $120 the res..
Zach is trying to figure out the price he should pay for a Corporate Bond with a $10,000 face value. His minimum acceptable return is 10% per year, compounded semi-annually. Sally, the company representative wants him to pay $8,500 for the bond and i..
What will be the government deficit. If the government finances the deficit by issuing bonds, what amout of bonds will it issue?
A software company’s labor requirements currently cost $380,000/year. The labor-hour requirements are expected to increase by 8% per year over the next 5 years. If inflation is 6.0%, determine the labor costs after 5 years using:
Holding demand constant, an increase in supply leads to
A firm has a demand equation Q=200-5P and is currently charging $2 for its product. The firm is currently maximizing profits, and its advertising elasticity of demand is .005. Determine the firm's optimal advertising-to-sales ratio. Determine the pro..
Welfare increases as more transactions are made in a market. Explain how derivatives lead to an increase in the number of transactions that are made in the market for the underlying asset upon which they are based.
Think about the ABC approach to consumer attitudes. How do the various components apply to your daily life as a consumer? Give examples and discuss!
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