Kathy works full time during the day as an economist and faces a 90 percent marginal tax rate. If Kathy were to get an offer to work a second job in the evenings doing consulting work for a local business for $10,000 per year, how much of this additional income would she be able to keep as net pay after taxes? O $1,000 $4,000 O $6,000 O $10,000

Kathy works full time during the day as an economist and faces a 90 percent marginal tax rate. If Kathy were to get an offer to work a second job in the evenings doing consulting work for a local business for $10,000 per year, how much of this additional income would she be able to keep as net pay after taxes? O $1,000 $4,000 O $6,000 O $10,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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According to a news item, the owner of a lottery ticket paying $3 million over 20 years is offering to sell the ticket for $1.2 million cash now. "Who knows?" the ticket owner explained. "We might not even be here in 20 years, and I do not want to leave it to the dinosaurs." Suppose the ticket pays $150,000 per year at the end of each year for the next 20 years, and the appropriate rate for discounting the future income is thought to be 5%. The present value of the ticket is approximately True or False: If the discount rate is in the 5% range, the sale price of $1,401.999 is reasonable (within 10% of the present value of the ticket). Ⓒ True O False
2. Jesse is buying a new car. The base price is $27,940. Jesse has a down payment of $3500. Extra charges $850 $495 Delivery charge Freight Federal air conditioning tax a. What is the total vehicle price before taxes? $100 b. What is the total amount that Jesse will need to pay after taxes? Remember that new vehicles need to pay both PST (6%) and GST (5%). c. What is the total price of the car after taxes and less the down payment? (This is the amount of the loan Jesse needs) d. Jesse pays for his new car with a personal loan from his bank. His loan is 5% over 3 years. How much interest will Jesse pay? (Use an online loan calculator to help you.) e. What is the total cost of the car? (Remember to include the down payment in the cost) f. What are some things that Jesse could do to reduce amount he pays at the end of the loan?
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 .…
If the poverty guideline for a family of four is $25,750, what is the income deficit if household income is $16,500? O $42,250 O $16,500 O $25,750 O $9,250 Unit 7- Chapter 1..xlsx 0Unit 7 Chapter 1..xlsx O Topic 2 (2).docx OTopic 2 (1).docx 11:07 PM 73°F "prt sc delete f12 Sus pua LL 10 144 61 I01 num -> backspace lock enter H. pause * shift W || N ctrl alt
1. If the sales tax increases to 12%, what percentage of our Archie's income will jeff now pay in text on his $150 bill? Show your work. 2. Will he make adjustments to his purchases and if yes, how will he adjust? If no, why not? 3. If the sales tax increases to 12%, what percentage of Jeff's income will Archie pay in tax on his $150 bill? Show your work.
Suppose George made $20,000 last year and that he lives in the country of Harmony. The way Harmony levies income taxes, all citizens must pay 10 percent in taxes on their first $10,000 in earnings and then 50 percent in taxes on anything else they might earn. Given that George earned $20,000 last year, his marginal tax rate on the last dollar he earns will be rate for his entire income will be and his average tax O 10 percent; 50 percent O 50 percent; less than 50 percent O 10 percent; less than 50 percent O 50 percent; 50 percent
QUESTION 19 Which of these is NOT a component of the 2016 Social Security reform proposal by Democratic lawmakers? O a. an increase in minimum benefits to 25% above the poverty line b. an increase in benefits by 2% for all recipients O c. a more generous cost-of-living adjustment O d. lower payroll taxes
5
When Ann's income increased from $100,000 to $120,000, her income tax payment increased from $22,000 to $30,000. Ann's average tax rate is and her marginal tax rate is A. 25 percent; 25 percent B. 40 percent; 25 percent C. 40 percent; 40 percent D. 25 percent; 40 percent
5. How can lowering replacement rates or increasing the retirement age affect the Social Security tax rate?
A buyer values a house at $525,000 and a seller values the same house at $485,000. If sales tax is 8% and is lessed on the buyer, then, what would be the highest price that the buyer would be willing to pay? O$525,000 Ob $523,800 O$485.000 d $456,111