Refer to the following table when answering the following questions. Table: U.S. 2015-2018 Domestic Income ($ billions) Compensation of employees, paid Wages and salaries Supplements to wages and salaries Business taxes Business subsidies Net operating surplus Private enterprises Surplus of government enterprises ow Transcribed Text Supplements to wages and salaries Business taxes Business subsidies 3 Net operating surplus Private enterprises Surplus of government enterprises Source: U.S. Bureau of Economic Analysis 2015 2018 O $13.850 O $9,704 O $31.518 O $18.480 9.264 9.704 7,487 7,866 1.777 1.838 1,210 1,238 57 57 4.489 4,575 4,509 4,593 -20 1,777 1.838 1.210 1.238 57 57 4,489 4.575 4,509 4.593 Depreciation of fixed capital 2.745 2.831 -20 -19 From this data, total GDP in 2015 was about billion. -19

Refer to the following table when answering the following questions. Table: U.S. 2015-2018 Domestic Income ($ billions) Compensation of employees, paid Wages and salaries Supplements to wages and salaries Business taxes Business subsidies Net operating surplus Private enterprises Surplus of government enterprises ow Transcribed Text Supplements to wages and salaries Business taxes Business subsidies 3 Net operating surplus Private enterprises Surplus of government enterprises Source: U.S. Bureau of Economic Analysis 2015 2018 O $13.850 O $9,704 O $31.518 O $18.480 9.264 9.704 7,487 7,866 1.777 1.838 1,210 1,238 57 57 4.489 4,575 4,509 4,593 -20 1,777 1.838 1.210 1.238 57 57 4,489 4.575 4,509 4.593 Depreciation of fixed capital 2.745 2.831 -20 -19 From this data, total GDP in 2015 was about billion. -19

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The city of Joslyn has three sources of revenue: borrowing, proprietary income from running the local electric power utility, and taxes. Last year, its total revenue was $150 million. If it received $10 million from running the electric power utility and borrowed $40 million, how much did it collect in taxes? Assume Joslyn's total revenue is $150 million. O $100 million O $110 million O $140 million O Nothing
Question: Solve for the equilibrium level of output in the following two scenarios: there isan income tax t=0.1, The income tax would result in the total amount of tax to be the lump sum tax and the income tax rate on income when t=0.1t=0.1 Y=−5+0.5(Y−250−0.1Y)+200+300+50' =−5+0.5(0.9Y−250)+550 =−5+0.45Y−125+550 =0.45Y−420 0.55Y=420Y=4200.55=763.636≅763.64 Please explain this solution. Where does the 0.45Y come from?
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4. Computing and interpreting average tax rates In a hypothetical economy, Clancy earns $11,000, Eileen earns $22,000, and Hubert earns $33,000 in annual income. The following table shows the annual taxable income and tax liability for these three single individuals. For example, Clancy, who earns $11,000, owes $2,860 in taxes. Use the tax liability figures provided to complete the following table by computing the average tax rate for Clancy, Eileen, and Hubert with an annual income of $11,000, $22,000, and $33,000, respectively. Taxable Income Tax Liability Average Tax Rate Taxable Income (Dollars) (Dollars) (Percent) Clancy 11,000 2,860 Eileen 22,000 3,520 Hubert 33,000 3,630 The income tax system for this country is
Consider an economy with a coconut producer, a restaurant, and a govern- ment. The coconut producer produces 10 million coconuts, which are sold for $2 each, generating a revenue of $20 million. The coconut producer pays wages of $5 million to its workers, $0.5 million interest on a loan to some consumers, and $ 1.5 million in taxes to the government. The restaurant buys 6 million coconuts, and the remaining 4 million coconuts are directly bought and consumed by consumers. The restaurant uses coconuts to produce meals that generate a revenue of $30 million. The restaurant pays its workers $4 million in wages, and the government $3 million in taxes. Consumers work for the coconuts producer, restaurant and the government, earning a total of $14.5 million in labour income ($9 million in wages from the private sector, and $5.5 million from the government). They also earn $24 million in after-tax profits (dividends) from the producers, in addition to the interest income of $0.5 million…
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( ii) Suppose the desired full employment equilibrium for a hypothetical county is 40 trillion but the economy is now in equilibrium at 60 trillion and MPC is 0.5, what must the government do?
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12- 12 - : “The document showing the income and expenses of the state together is called X.” In his statement, which of the following is most appropriate for X? a) national income B) Marginal revenue NS) purchasing power parity D) Budget TO) national income per capita
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5. The following data (in millions of dollars) expresses all the relevant information for the agents in a given economy: Consumption 300 Wages and Salaries 275 Net Interest and Rents 40 Government Expenditures on Goods and Services 125 Indirect Taxes Minus Subsidies 60 Imports 100 Exports 150 Gross Investment 90 Depreciation 50 Corporate Profits 75 Proprietor's Income 60 a) Determine the gross domestic product for this economy. b) Determine the national income for this economy. c) Determine the net factor income from abroad for this economy. What is the meaning of this value?