Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 27, Problem 5RQ
To determine
National Income and Private Income.
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Students have asked these similar questions
4
Suppose that Alberta imposes a sales tax of 10 percent on all goods and services. An Albertan named Ralph then goes into a home
improvement store in the provincial capital of Edmonton 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) v (Click to select)
$220
$200
$180
None of the above
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.
2. Income taxes
The following table shows income tax rates in Econoland.
Annual Income
Tax Rate
Up to $50,000
10%
From $50,001 to $75,000
20%
Over $75,000
30%
This is an example of a
income tax.
Kevin, a resident of Econoland, currently works 20 hours a week and earns an annual income of $50,000. After paying income taxes, Kevin receives
per year.
If Kevin works an additional 10 hours a week (30 hours a week total), his annual income will be $75,000. After paying income taxes, Kevin will receive
per year. In other words, by working an additional 10 hours per week, Kevin will receive an additional
more than what he would
If Kevin works 10 more hours in a week (40 hours a week total), his annual income will further increase to $100,000. After paying income taxes, Kevin
per year. In other words, by working 10 more hours per week, Kevin will receive
receive if he works only 30 hours a week.
will receive
As Kevin works more, the additional amount he receives from working 10 more hours
.…
Chapter 27 Solutions
Economics (Irwin Economics)
Ch. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Prob. 3DQCh. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Prob. 6DQCh. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Prob. 10DQ
Ch. 27 - Prob. 11DQCh. 27 - Prob. 12DQCh. 27 - Prob. 13DQCh. 27 - Prob. 14DQCh. 27 - Prob. 1RQCh. 27 - Prob. 2RQCh. 27 - Prob. 3RQCh. 27 - Prob. 4RQCh. 27 - Prob. 5RQCh. 27 - Prob. 6RQCh. 27 - Prob. 7RQCh. 27 - Prob. 8RQCh. 27 - Prob. 9RQCh. 27 - Prob. 10RQCh. 27 - Prob. 1PCh. 27 - Prob. 2PCh. 27 - Prob. 3PCh. 27 - Prob. 4PCh. 27 - Prob. 5PCh. 27 - Prob. 6PCh. 27 - Prob. 7PCh. 27 - Prob. 8P
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