Elucidate how Personal income tax is a major source
Elucidate how Personal income tax is a major source?
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a. The Federal personal income tax is progressive. People with higher incomes pay a higher percentage of that income as tax than do people with lower incomes.
b. A marginal tax rate is the rate at which the tax is paid on each additional unit of taxable income.
c. The average tax rate is the total tax paid divided by total taxable income.
d. A tax whose average tax rises as income increases is progressive.
Briefly describe the term Benefit Cost Ratio (or B/C Ratio) or Profitability Index (or PI)?
The key model underpinning David Hume’s price-specie flow mechanism which most mercantilists failed to grasp is termed today as: (i) the equimarginal principle. (ii) the wages-fund doctrine. (iii) the quantity theory of money. (iv) partial equil
Why private goods are produced through the market?
Question: Suppose three identical firms are engaged in Cournot competition in quantities. They all have marginal costs equal to 40. Market demand is given by: Q : Cost of debt and Equity Cost of debt = Cost of debt= (1-tax rate)* interest rate * (debt ÷capital employed)Cost of equity = risk free rate + market premium (equity shareholders funds÷ capital employed)
Cost of debt= (1-tax rate)* interest rate * (debt ÷capital employed)Cost of equity = risk free rate + market premium (equity shareholders funds÷ capital employed)
What persuades new firms to enter in an industry? Answer: Abnormal profit encourages new firms to enter an industry.
Explain increased global competition?
For the question below, utilize the given information. The market for gizmos is competitive, with an increasing sloping supply curve and a downward sloping demand curve. With no govt. intervention, the equilibrium price is $25 and the equilibrium quantity is 10,000 gi
The state legislature has voted to develop a grant-in-aid policy to try and induce local communities to devote more resources to improving their infrastructure. Town O = Has an operating budget of $2 million; currently spends a tot
From the heterodox approach, what options does the enterprise need to produce more output? What effect do these options put on its cost structure?
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