Suppose the government taxes 10 percent of the first $30,000 in income, 20 percent of the next $20,000 in income, and 30 percent of all income over $50,000 . Calculate the marginal tax rate and the average tax rate for a person who earns $70,000
The marginal tax rate would be 30 percent because the person earns more than $50,000 . The average tax rate would be 18.6%. The person pays $3,000 on the first $30,000 of income, $4,000 on the next $20,000 in income, and $6,000 on the remaining $20,000 of income. $13,000/$70,000=18.6%.
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Good news about an economic indicator __________ the denominator of a bond's valuation formula, __________ the bond's price
A) raises; raising B) raises; lowering C) lowers; raising D) lowers; lowering
Air fares are generally lower on Tuesdays and Wednesdays each week. What is a likely explanation for this occurrence?
A. Supply is relatively variable, and lower demand on these days leads to a lower equilibrium price. B. Demand is relatively variable, and lower supply leads to a lower equilibrium price. C. Lower levels of both supply and demand on these days lead to a lower equilibrium price. D. Supply is relatively fixed, and lower demand on these days leads to a lower equilibrium price. E. Demand is relatively fixed, and lower supply leads to a lower equilibrium price.