EXPLORING ECON.-W/ACCESS (LL) >CUSTOM<
7th Edition
ISBN: 9781305757448
Author: Sexton
Publisher: CENGAGE C
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Chapter 20, Problem 11P
To determine
How permanently lowering marginal tax rates will increase capital stock, level of education, level of technology and the amount of developed natural resources over time.
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Laura earns a base salary of $50,000 as an event planner and is subject to the following hypothetical income ta is considering taking on an additional wedding that will increase her income by $5,000. In order for Laura to c worth her time, it must earn her $3,000 after taxes. Please round all answers to two decimal places. What is the marginal tax rate associated with taking on this wedding? Marginal tax rate: Income $0-$10,000 $10,001-$30,000 $30,001-$50,000 $50,001+ Average tax rate: 4 What is Laura's average tax rate if the extra wedding is accepted? ves R Given the information, will Laura undertake this extra wedding? 5 7 Tax rate 5% 10% 20% 50% B T 6 % 45 % 8 9
Suppose demand is given by ??(?) = 1 – ? and supply ??(?) = ?, with prices in dollars. If buyers pay a 10 cent tax, what is the after tax demand? Do the same computations as the previous exercise and show that the outcomes are the same.
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The Manning Company has two factories, one that makes roof trusses, and one that makes cabinets. With? workers, the roof factory produces trusses per day. With n workers, the cabinet plant produces 5. The Manning Company has 400 workers to use in the two factories. Graph the production possibilities frontier. (Hint: Let ? be the number of trusses produced. How many workers are used making trusses?)
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Please only answer question 3
The statutory marginal tax rate for income levels between $0 and $100,000 is 25%. The statutory marginal tax rate for income levels above $100,000 is 50%. A family with a child purchases 800 hours of childcare per year. The hourly rate for childcare was $10 in 2020. Families can deduct childcare expenditures up to $8,000. One spouse worked during the year while the other spouse did not earn income. The spouse that worked can claim a tax credit of $6,000.
1. What is the after-tax income available to the family when the spouse that worked earned $100,000 in 2020? What is the effective tax rate (taxes paid over total pre-tax income).
2. What is the after-tax income available to the family when the spouse that worked earned $200,000 in 2020? What is the effective tax rate (taxes paid over total pre-tax income). How does the after-tax price of childcare differ compared to the family with income = $100,000.
3. There is an inflation rate of 100%…
Chapter 20 Solutions
EXPLORING ECON.-W/ACCESS (LL) >CUSTOM<
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