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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 . which means his cost of leisure

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 . which means his cost of leisure

Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Design Of The Tax System
Section: Chapter Questions
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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 . which means his cost of leisure
Transcribed Image Text: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 . which means his cost of leisure
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