The incomes of five citizens from a hypothetical economy are in the accompanying table. Suppose the governm new program for low-wage earners. Under this program, each citizen is given a refund that is paid for with tax revenues and is equal to a percentage of the citizen's income. The chart shows applicable income brackets and the percentage to be refunded. Citizen Frankie Vinnie Artic Nicky Jackie Income ($) 27000.00 33000.00 13000.00 61000.00 21000.00 Income Range ($) Income Supplement (% of Original) 0-17,000 17,001-36,000 36,001-52,000 52,001 and above 40% 25% 10% 0%
The incomes of five citizens from a hypothetical economy are in the accompanying table. Suppose the governm new program for low-wage earners. Under this program, each citizen is given a refund that is paid for with tax revenues and is equal to a percentage of the citizen's income. The chart shows applicable income brackets and the percentage to be refunded. Citizen Frankie Vinnie Artic Nicky Jackie Income ($) 27000.00 33000.00 13000.00 61000.00 21000.00 Income Range ($) Income Supplement (% of Original) 0-17,000 17,001-36,000 36,001-52,000 52,001 and above 40% 25% 10% 0%
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:The incomes of five citizens from a hypothetical economy are in the accompanying table. Suppose the government introduces a
new program for low-wage earners. Under this program, each citizen is given a refund that is paid for with tax revenues and is
equal to a percentage of the citizen's income. The chart shows applicable income brackets and the percentage to be refunded.
Citizen
Frankie
Vinnie
Artie
Nicky
Jackie
Income ($)
27000.00
33000.00
13000.00
61000.00
21000.00
What is the amount of Frankie's refund?
What is the amount of Artie's refund?
What is the amount of Nicky's refund?
Which of the following characteristics of the welfare
state is avoided by the supplement's gradual decline?
a revenue shortfall
a benefits notch
inflation
Orecession
LA
Income Range ($) Income Supplement (% of Original)
0-17,000
17,001-36,000
36,001-52,000
52,001 and above
40%
25%
10%
0%
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