Suppose a country imposes a lump-sum income tax of $6,000 on each individual in the country. What is the average income tax rate for an individual who earns $60,000 during the year?
a. 0%
b. 10%
c. More than 10%
d. The average tax rate cannot be determined without knowing the entire tax schedule.
b
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Median household income in the United States has increased from $38,771 in 1967 to $51,017 in 2012. Based only on this fact, we can conclude that
A) Inequality is increasing in the United States. B) Inequality is decreasing in the United States. C) Inequality is not changing in the United States. D) We cannot conclude anything about inequality in the United States without more information.
An independent trucker has to choose one of the four possible combinations of inputs listed below. The two inputs are drivers and machinery. If he buys expensive machinery, then he can hire fewer drivers to deliver the same output. The input combinations are Method 1: 20 drivers, 10 machines;Method 2: 50 drivers, 2 machines;Method 3: 100 drivers, 0 machines;Method 4: 10 drivers, 12 machines.Hiring a driver costs $10. Each machine costs $100. Which method should he use?
A. Method 3 B. Method 2 C. Method 1 D. Method 4