This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Consider a world with two income earners and an income tax. Individual A earns 25,000 and pays 1,000 ... (Read 179 times)

vicotolentino

  • Hero Member
  • *****
  • Posts: 552
on: Jul 1, 2018
Consider a world with two income earners and an income tax. Individual A earns 25,000 and pays 1,000 in taxes. Individual B earns 100,000 and pays 3,000 in taxes. Which of the following best classifies the income tax system in this world?
 
  a. proportional
  b. progressive
  c. regressive
   d. consumption

Question 2

Lisa consumes only pizzas and burritos. In equilibrium, her marginal utility of pizza is 20 and her marginal utility of a burrito is 10. The price of a pizza is 4. What is the price of a burrito?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

beccamahon

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

In equilibrium, the ratio of the marginal utility of a pizza divided by the price of a pizza must equal the marginal utility of a burrito divided by the price of a burrito. Thus, the price of a burrito must be 2.


vicotolentino

  • Hero Member
  • *****
  • Posts: 552
Reply #2 on: Jul 1, 2018
Thank you


beccamahon

  • Sr. Member
  • ****
  • Posts: 338
Reply #3 on: Jul 1, 2018
No problemo


« previous next »
 

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

World human population growth through history illustrates an exponential growth pattern. World human population growth through history illustrates an exponential growth pattern.
Deserts differ across the world. (a) Acacia trees between a gravel plain and sand dunes in the Namib Deserts differ across the world. (a) Acacia trees between a gravel plain and sand dunes in the Namib
Climate—The “Dry World” Climate—The “Dry World”
The per capita emissions of the developed world The per capita emissions of the developed world
Relationship between Income and Happiness in the United States Relationship between Income and Happiness in the United States
World Deserts World Deserts
Video: Control of ventilation rate by other brain centers (posts, hypothalamus & cerebral cortex)

For a complete list of videos, visit our video library