Q1. A flat tax plan allows individuals to deduct a standard allowance of $10,000 from their wages. Assume that the flat tax rate is 12%. Calculate the amount of income tax and the average tax rate if you were earning:
1.$30,000 a year,
2.$60,000 a year.
Q2. You are the manager of a firm that sells its product in a competitive market at a price of $60. Your firm's cost function is C = 50 + 3Q2. The profit-maximizing output for your firm is
Q3. Explain how it is possible for the economy to produce at a point beyond its institutional production possibilities frontier, but not beyond its physical ppf.