Answer True, False or Uncertain. Brieáy explain your answer The rate of return equality is inconsistent with the observations found in the Equity Premium Puzzle.
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- Explain how a country may experience greater equality in the distribution of income, yet still experience high rates of poverty. Hint: Look at the Clear It Up 'How do governments measure poverty in low-income countries?' and compare to Table 15.5.How is the poverty rate calculated?← → X VD C Calculate the income tax for a single person who has $81,396 of taxable income using the table below which shows the tax brackets for 2016 for single workers. TODE EQ Taxable Income $0 to $9,375 $9,376 to $37,550 $37,551 to $90,850 $90,851 to $189,500 $189,501 to $411,650 $411,651 to $414,500 $414,501 or more Answer to the nearest penny. Tax Rate 12% of amount over $0 $945 plus 16% of the amount over $9,375 $5,278 plus 26% of the amount over $37,550 $18,526 plus 29% of the amount over $90,850 $46,592 plus 34% of the amount over $189,500 $119,622 plus 36% of the amount over $411,650 $120,135 plus 40.2% of the amount over $414,500 hp
- What is the concept of horizontal equity and why is ithard to apply?Pls help with below homework-) Is it true that universal guarantedd basic income is the best solution for poeverty and income ineqality ? Please explain in details.A5 South Africa's top 10% of earners contribute almost half of all revenue, and the richest 10% of its residents holds 85.6% of net wealth, according to the OECD, which sees scope for the tax system to be used more to reduce inequality. Based on the above paragraph, which of the following statements is INCORREC A. South African 's bottom 90%of income earners contribute allof to the revenu B. South Africa's income inequality levels are very hig C. South Africa' s income inequality levels are very lo D. South Africa's income contribution is equalwheT
- SC Many economists believe that a more effective way to supplement the income of the poor is through a negative income tax. Under this scheme, everyone reports his or her income to the government; individuals and families earning a higher income will pay a tax based on that income, while low-income individuals and families receive a subsidy, or negative tax. Assume that the only qualification required to receive a tax credit is low income. Suppose the government uses the following equation to compute a family's tax liability: Taxes Owed = (1/4 of Income) For each of the incomes listed in the following table, determine the tax liability for a family with that income level. (Note: If a family receives a subsidy because its income is too low, be sure to indicate the tax liability as negative.) Income Tax Liability (Dollars per year) (Dollars per year) 0 20,000 40,000 60,000 77°F Mostly sunny (1/4 of Income) - $10,000 F1 F2 0- F3 Q+ F4 F5 DA COL F6 i F7 1 C J F8 C F9 SAC F10 FO F11 F12 2…Consider an eronomy with the following equation. C = atb( Y-T) cY - dite %3D N = fY-gi G = G P= 1 () is-Curve U Derive oun eapression for the and explain whatt this eguaton ropresents 122) Denje an expreacion for the LM-aurve ond explain what t "reprerents b2) Compete the lovel A private caving when both the goods and financiat morket are in eguilibrium.S The table below shows labor income for four individuals and the amount each has pa Labor Income, Tax Paid, and Average Tax Rate Labor Income Individual Samantha Charles Amanda Young (dollars) $40,000 60,000 84,000 105,000 O The income tax is progressive. The income tax is regressive. The income tav ic proportional
- Answer the questions based on the data in the table. Round all answers to two places after the decimal. Earner Annual income amount Income tax amount Sally $90247.00 $29781.51 Steve $160249.00 $46472.21 Jamie $230251.00 $57562.75 Pat $300253.00 $72060.72 What is Sally's tax rate? % What is Pat's tax rate? %D Question 5 Based on the figure below, which of the following is correct? Gini coefficients (various years, 2013-2019) Market Gini Disposable Gini Slovakia Slovenia Iceland Czech Republic Belgium Norway Finland Denmark Austria Sweden Poland Germany Hungary Ireland Canada France Netherlands Switzerland Estonia Greece Portugal Russia Luxembourg Australia Italy Spain Japan Latvia Korea Israel Romania Lithuania South New Zealand UK US Turkey Bulgaria Mexico Chile Brazil India Costa Rica O Income inequality in market income is lower in lower- and middle-income countries O India does the most to reduce inequality in disposable income by using taxes and transfers O Taxes and transfers have no impact on the inequality in disposable income O Income inequality before taxes and transfers is similar in the US and most European countries China South Africa FULLSCREEN Figure 5.21 Income inequality in market and disposable income across the world.Explain very briefly what you understand from income effect and substitutioneffects of change in income tax rates