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 432 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?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

The underside of a male (top) and a female (bottom) individual of Pachygrapsus marmoratus, showing t The underside of a male (top) and a female (bottom) individual of Pachygrapsus marmoratus, showing t
Young children typically are boundlessly curious about the world around them. Young children typically are boundlessly curious about the world around them.
Ten Leading Causes of Death in the World, 2011 Ten Leading Causes of Death in the World, 2011
Soil Erosion and Degradation in the world Soil Erosion and Degradation in the world
Deserts on the world map Deserts on the world map
Coniferous forests on the world map Coniferous forests on the world map
Video: Glycolysis - Introduction to ATP and the burning of sugar

For a complete list of videos, visit our video library