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  1. Topics
  2. Business
  3. Economics Study Set 4
  4. Quiz 18: Public Choice,taxes,and the Distribution of Income

Refer to Table 18-5

Question 79
Essay

Refer to Table 18-5.A tax exemption is granted for the first $10,000 earned per year.Suppose you earn $75,000. a.What is the amount of taxes you will pay? b.What is your average tax rate? c.What is your marginal tax rate?

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Q 80
Suppose,on average,a family in Church Falls earning $60,000 per year paid 6 percent of its income in state taxes.A family earning $80,000 paid,on average,$4,760 in state income taxes.Are state taxes in Church Falls progressive or regressive? Be sure to explain the difference between a progressive tax and a regressive tax.
Q 81
What is the difference between a marginal tax rate and an average tax rate? Which is more important in determining the impact of the tax system on economic behavior?
Q 82
Describe each of the principles governments consider when deciding which taxes to use.
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