Suppose that California imposes a sales tax of 10 percent on all goods and services. A Californian named Ralph then goes into a home improvement store in the state capital of Sacramento and buys a leaf blower that is priced at $200. With the 10 percent sales tax, his total comes to $220. How much of the $220 paid by Ralph will be counted in the national income and product accounts as private income (employee compensation, rents, interest, proprietors' income, and corporate profits)? $220 $200 $180 None of these are correct.

Suppose that California imposes a sales tax of 10 percent on all goods and services. A Californian named Ralph then goes into a home improvement store in the state capital of Sacramento and buys a leaf blower that is priced at $200. With the 10 percent sales tax, his total comes to $220. How much of the $220 paid by Ralph will be counted in the national income and product accounts as private income (employee compensation, rents, interest, proprietors' income, and corporate profits)? $220 $200 $180 None of these are correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Table 12-10 On Taxable Income ... The Tax Rate is.. Up to $8,375 10% From $8,375 to $34,000 15 From $34,000 to $82,400 25 From $82,400 to $171,850 28 From $171,850 to $373,650 33 Over $373,650 35 Refer to Table 12-10. If Willie has $170,000 in taxable income, his tax liability will be a. $16,781. b. $41,309. c. $41,827. d. $47,600.
Theo, a single taxpayer, actively participates in a rental real estate activity. During the year, his total rental real estate income was $25,000. His only other income for the year was $180,000 in wages. He does not have any adjustments to income, nor does he have any expenses allocable to investment income. How much of Theo's income is subject to the net investment income tax? $0 $5,000 $25,000 $205,000
Which of the following statements regarding tax credits is true? Group of answer choices a. They are deductions that depend on the taxpayer’s filing status, age, and vision and that can be claimed by a taxpayer whose total itemized deductions are small. b. They are deductions from adjusted gross income (AGI) based on the number of persons supported by the taxpayer’s income. c. They represent the income remaining after subtracting all allowable adjustments to (gross) income. d. They are personal expenditures that can be deducted from adjusted gross income (AGI) when determining taxable income. e. They are deductions from a taxpayer’s tax liability that directly reduce his or her taxes due.
3-The public welfare spending category for state and local governments includes Group of answer choices many programs that are initiated by private foundations. contributions in support of public universities. some federal programs that are administered by state and local governments. All of the above are correct. 3.1-The amount of income tax owed by a family is Group of answer choices not simply proportional to its total income. unaffected by deductions. total income minus tax credits. a constant fraction of income.
Thelma's current income is $100,000 and she currently pays $30,000 in income tax. D Any income she earns above $100,000 is taxed at 40 percent. Which of the following correctly calculates her tax burden? her average tax rate is 30 percent her marginal tax rate is 40 percent her average tax rate is 40 percent her marginal tax rate is 30 percent
In an economy where people spend 80% of their incomes, the government lowers taxes by $5000. Calculate the change in real GDP that results. (Be extra careful to follow numeric instructions; round intermediate steps to four decimal places and your final answer to two. Use a positive number to denote an increase and a negative number (with negative sign) to denote a decrease.)
The following table shows the national income data for an economy in year 2020. ITEMS Dividends Interest on government loan Undistributed profit Gross interest Subsidies Corporate income taxes interest on consumer loan Indirect taxes Gross Domestic Product at factor cost Depreciation Wages and salaries Rent Corporate income before taxes You are required to calculate: (a) net interest. (b) corporate profit. (c) National Income. (d) Gross National Product at factor cost. Net factor income from abroad. RM (Million) 160 100 125 990 120 180 90 160 4,370 250 1,080 645 710
OilPatch is a mineral rich economy in which the government gets most of its tax revenue from oil royalties. But OilPatch has an income tax. The tables below describe the labor market in OilPatch and the economy's production function. The government introduces an income tax of $2 per hour worked. Use the tables below, determine the after-tax real wage received by workers Labor market Real wage rate (dollars per hour) 10 11 12 13 14 15 $13/hour O $11 hour $10/hour $12/hour Quantity of labor demanded (thousands of hours) 5 4 2 Quantity of labor supplied (thousands of hours) 3 6 7 Production function Employment (thousands of hours) 2 3 6 7 Real GDP (millions of dollars) 6 11 15 18 20 21
Table 12-12United States Income Tax Rates for a Single Individual, 2009 and 2010. 2009 Tax Rates Income Ranges 2010 Tax Rates Income Ranges 15% $0 – $28,000 10% $0 – $10,000 28% $28,000 – $70,000 15% $10,000 – $30,000 31% $70,000 – $140,000 27% $30,000 – $60,000 36% $140,000 – $300,000 30% $60,000 – $150,000 40% over $300,000 35% $150,000 – $320,000 38% over $320,000 Refer to Table 12-12. Kurt is a single person whose taxable income is $35,000 a year. What is his marginal tax rate in 2010? Group of answer choices 10% 15% 27% 30%
Suppose a particular model of car contains $17,500 worth of raw materials and requires $15,000 worth of labor to produce. This car sells for $35,000. Which dollar amount would be used to calculate this transaction's contribution to gross domestic product (GDP)? $2,500 $17,500 $20,000 $32,500
2) In 2015, a country's progressive income tax rates were 15% on the first $25,000, 18% on the next $35,000, 20% on the next $45,000, and 25% on any additional income. If your gross taxable earnings for the year were $150,000, calculate the total income tax that you paid.