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Economics For Today

10th Edition
Tucker
Publisher: Cengage Learning
ISBN: 9781337613040

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BuyFindarrow_forward

Economics For Today

10th Edition
Tucker
Publisher: Cengage Learning
ISBN: 9781337613040
Chapter 12, Problem 11SQ
Textbook Problem
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As shown in Exhibit 12, a family of four with no earned income receives _______from the government.

  1. a. Zero payment
  2. b. The break-even income of $40,000

Chapter 12, Problem 11SQ, As shown in Exhibit 12, a family of four with no earned income receives _______from the government.

  1. c. A $20,000 payment
  2. d. A $20,000 tax deferment

To determine

The income received by a family of four members with zero income.

Explanation of Solution

The tax is a unilateral payment from the public to the government paid on various grounds such as for the income earned, the property owned, on the profession in which the individual is employed, and so on. The ground makes it income tax, property tax, professional tax, and so on. The tax slab structure of the economy is given as follows:

Option (c):

The family of four members has to pay the income tax for the income level of above $40,000. When the family earns an income less than $40,000, it receives a payment from the government. From the exhibit, it is identified that the family gets a $20,000 payment from government when the family income is zero. Thus, option 'c' is the correct answer.

Option (a):

When there is no income earned by the four member family, the government provides  cash assistance of $20,000 for the family...

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