CONNECT F/MICROECONOMICS
21st Edition
ISBN: 2810022151240
Author: McConnell
Publisher: MCG
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Question
Chapter 20, Problem 5DQ
To determine
The most important source of revenue and expenditure for the state and local governments.
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Students have asked these similar questions
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
4
Economics
Below is a tax table. Assume I earn $150 a year. My tax bracket is
my marginal tax rate is
I pay in taxes.
my average tax rate is
; and
O to $100 is 10%
$101 to $200 is 15%
$201 to $300 is 20%
O 10%; 15%; 13.5%; $17.50
O 15%; 15%; 11.7%; $17.50
O none of these
O 15%; 15%; 12.5%; $13.50
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Similar questions
- 5. LO 4 Suppose, as in the federal income tax code for the United States, that the representative con- sumer faces a wage income tax with a standard deduction. That is, the representative consumer pays no tax on wage income for the first x units of real wage income, and then pays a proportional taxt on each unit of real wage income greater than x Therefore, the consumer's budget constraint given by C wh -D + if wh- D=x., or C (1-wh-D+ tx+ if_wCh = D2 Now, suppose that the government reduces tax deduction x Using diagrams, determine the effects of this tax change on the consumer, and explain your results in terms of income and sub stitution effects. Make sure that you consider two cases. In the first case, the consumer does not pay any tax before x is reduced, and in the second case, the consumer pays a positive tax before x is reducedarrow_forwardPLS HELP ASAP ON BOTHarrow_forwardIf the tax code exempts the first $20,000 of income from taxation and then taxes 25 percent of all income above that level, then a person who earns percent and a marginal tax rate of $50,000 has an average tax rate of percent. O 15, 25 O 25, 15 O 25, 30 O 30, 25arrow_forward
- Question 8 Year 1 2 3 4 5 Government Government tax revenues expenditures (billions of dollars) 240 250 260 300 325 O 50 What is the amount of the surplus or deficit incurred in year 5 by the government shown in the above table?. O $15 billion deficit O $15 billion surplus (billions of dollars) 240 245 255 320 340 O $5 billion surplusarrow_forwardIn the United States, from the most recent fiscal data we reviewed in class, total government spending is roughly 39% of GDP; yet, using the expenditure method for calculating GDP, government expenditures on goods and services were only 17% of GDP. Which of the following most likely explains the difference? Select one: O a. Transfer payments are included in the second figure, but not the first one. O b. Transfer payments are included in the first figure, but not the second one. O c. Military (i.e. defense) spending on goods and services is included in the second figure, but not the first one. O d. Military (i.e. defense) spending on goods and services is included in the first figure, but not the second one.arrow_forwardThe ratio of all levels of government spending to GDP in the United States is about percent. 40 50 O 70 O 10 - 20arrow_forward
- Just need number 8 answered...#7 is there for reference.arrow_forwardBrief explanationarrow_forwardSuppose George made $20,000 last year and that he lives in the country of Harmony. The way Harmony levies income taxes, each citizen 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. So given that George earned $20,000 last year, his marginal tax rate on the last dollar he earns will be __________ and his average tax rate for his entire income will be _________________. a. 50 percent; 50 percent. b. 50 percent; less than 50 percent. c. 10 percent; 50 percent. d. 10 percent; less than 50 percent.arrow_forward
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