How will the tax deduction affect the budget line

Assignment Help Econometrics
Reference no: EM13222786

Sam is subject to a 40 percent tax on income, and her after-tax income is 90,000. Now suppose the government permits her to deduct her contributions (to oscar0 from her income before the 40 percent tax rate is applied. How will this deduction affect her budget line?

Reference no: EM13222786

Questions Cloud

What will happen in the long run to the price of fertilizer : Assuming there is no change in demand or the firms cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, quantity supplied by each firm, and the total quantity supplied to the market.
How to calculate the solubility : The Ksp of CaSO4 is 4.93× 10-5. Calculate the solubility (in g/L) of CaSO4(s) in 0.300 M Na2SO4(aq) at 25 °C.
How much output must the firm produce to break even : A firm that has total fixed costs of $60,000 sells its output for $250 per unit and has an average variable cost of $200. If the firm's cost and revenue curves are linear, how much output must the firm produce to break even
Explain methane has a henry''s law constant : Methane has a Henry's Law constant (k) 9.88x10^-2 mol/Latm when dissolved in benzene at 25degrees C. How many grams of CH4 will dissolve in 3.00L of benzene if partial pressure is 1.48atm?
How will the tax deduction affect the budget line : Sam is subject to a 40 percent tax on income, and her after-tax income is 90,000. Now suppose the government permits her to deduct her contributions (to oscar0 from her income before the 40 percent tax rate is applied. How will this deduction affe..
Explain when ebay gets introduced to the market : As everyone knows, eBay knows, eBay allows buyers and sellers from around the world to meet in an electronic market place and make trades Search engines, ratings of trading histories, and various other eBay details make trading very inexpensive.
Explain the freezing point of the solution : Thyroxine, an important hormone that controls the rate of metabolism in the body, can be isolated from the thyroid gland. If 0.455 g of thyroxine is dissolved in 10.0 g of benzene, the freezing point of the solution could be measured as 5.144oC.
Explain how many times faster will the reaction occur : The activation energy of a certain reaction is 77.3 kj/mol. How many times faster will the reaction occur at 41 degrees celcius than at 0 degrees celcius?
Explain nuclear disintegrations per second : The activity of a radioactive sample is the number of nuclear disintegrations per second, which is equal to the first-order rate constant times the number of radio-active nuclei present.

Reviews

Write a Review

Econometrics Questions & Answers

  Design a simple econometric research project

Design a simple econometric research project

  Multiplicative decomposition method

Multiplicative decomposition method

  Market for cigarettes

The Australian government administers two programs that affect the market for cigarettes.

  Solve the forecast model

Solve the forecast model

  What are the marginal abatement cost functions

What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).

  Write the t statistic for testing the null hypothesis

Explain why this model violates the assumption of no perfect collinearity.  Write the t statistic for testing the null hypothesis

  What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

  Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

  Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

  Question about mobile commerce

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

  Calculating the average days past due and average flow time

Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:

  Mechanism of an english auction and second price auction

Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd