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choli [55]
2 years ago
5

Congress would like to increase tax revenues by 17 percent. assume that the average taxpayer in the united states earns $52,000

and pays an average tax rate of 20 percent.
a. if the income effect is in effect for all taxpayers, what average tax rate will result in a 17 percent increase in tax revenues? (round your answer to 2 decimal places.)
Business
1 answer:
Vadim26 [7]2 years ago
3 0

Calculation of average tax rate that will result in a 17 percent increase in tax revenues:


Currently, the average taxpayer in the united states earns $52,000 and pays an average tax rate of 20 percent, so the average tax revenue is 52000*20% = $10,400

If Congress wants to increase tax revenues by 17 percent, then the average tax revenue shall be 10400+(10400*17%) = $12,168


Hence average tax rate that will result in a 17 percent increase in tax revenues shall be = 12168 / 52000 = 0.234 = <u>23.40%</u>






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A one-year zero coupon bond costs \$99.43$99.43 today. Exactly one year from today, it will pay \$100$100. What is the annual yi
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0.00573

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a. 125.43 hours

b. 767.92 hours

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y = ax ^b

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a is the time its takes to manufacture first plane

b is the log of 80% divided by log 2

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                                            = 178.67 hours

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                                            = 191.98 hours

Total time for 5 planes = 191.98 hours × 4

                                      = 767.92 hours

The fifth plane would take =  893.35 - 767.92

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Average time for the 18 planes = 300(18)^-0.322

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Total time for 18 planes = 118,28 hours × 18

                                       = 2,129.04 hours

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2 years ago
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