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Larry earns $25,000 and pays $2,500 in tax, while Suzy earns $50,000 and pays $15,000 in tax. If Larry's income increases by $100, his tax increases by $12, but if Suzy's income increases by $100, her tax increases by $35. Calculate the average tax rate and marginal tax rate that Larry pays and that Suzy pays. Is this income tax fair? Explain.
the new mayor has pledged to reduce air pollution and the only source of air pollution in the city are two
At the end of each year, a worker invests $2,000 into an account the draws 4% interest. The worker makes every payment for the next 30 years except for the payment at the end of year 10. That is, no money is invested at the end of year 10. How muc..
The Town-Pump service station has performed an analysis of its customers and found that 85% pay on credit and the rest pay cash. We are interested in finding the probability distribution of the random variable, X.
If you have to make a random guess and there are five possible answers, what is the expected value of guessing?
Derive a product rule for y = F(x)S(x)T(x), where F, S, and T are each differentiable functions. Show that in words it says: to multiply two factors by the derivative of the third factor, and do this in all three possible ways and add the results
Find the uniform annual amount that is equivalent to a uniform gradient series in which the first year's payment is $500, the second year's payment is $600, the third year's payment is $7000, and so on, and there is a total of 20 payments. The ann..
Suppose you start with 10 hours and then decide to spend an additional $30 on tennis. On your curve, show the initial point and the new point. How many additional hours can you get?
Identify and define two economic indicators that reflect the strength of the economy (e.g. real GDP, unemployment rate, inflation rate, interest rate, housing starts, etc.).
In the competitive market for hard liquor, the demand is relatively inelastic and the supply is relatively elastic. Will the incidence of an excise tax of $T be greater for consumers or producers?
What deposit must be made each month until the man retires so that he can make annual withdraws of $40,000 in terms of today's dollars over the next 15 years following his retirement.
The MacBurger Company, a chain of fast food restaurants, expects to earn $200 million after taxes for the current year. The company has a policy of paying out half of its net after tax income to the holders of the company's 100 million shares of c..
Suppose now thatbefore making this product, the firm has to pay fixed costs of research anddevelopment equal to $3,000,000. How large does N need to be before theprofit-maximizing firm chooses to pay the fixed cost
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