Calculate the average and marginal tax rates in the following table. (Hint: Enter your answers as decimals and do not round when computing tax rates. For example, 8.25% should be entered as "8.25" and not "0.825") Total Taxable Income Total Tax Due Average Tax Rate Marginal Tax Rate
(Dollars) (Dollars) (Percentage) (Percentage)
0 0 0 0
2,000 130
10,000 650
20,000 1,300
100,000 6,500
The tax rates shown in this table are:.
True or False: If the marginal tax rate is equal to the average tax rate, then the average tax rate must remain the same.
A. True
B. False
Sean, Yvette, and Bob are the only voters in a small society and are considering whether to publicly finance a project.
Indicate in the following table what each individuals vote would be and whether the public project will be funded
Name Marginal Cost Marginal Benefit Vote
Sean $100 $108
Yvette $100 $12
Bob $100 $125
Total $300 $245
If this same project were taking place in the private sector, a firm fund the project.
In private markets, decisions to provide goods or services to the market are generally made if marginal benefits marginal costs. in comparison, the decisions to provide goods and services by governments are made through . as a result, governments may approve projects whose costs their benefits.

1. a. Average Tax rate =  130/2,000 = 6.5%

Marginal Tax Rate = (130 - 0)/ (2,000 - 0) = 6.5%

b. Average Tax rate =  650/10,000 = 6.5%

Marginal Tax Rate = = 6.5%

c.  Average Tax rate =  1,300/20,000 = 6.5%

Marginal Tax Rate = = 6.5%

d.  Average Tax rate =  6,500/100,000 = 6.5%

Marginal Tax Rate = = 6.5%

2. The tax rates shown in this table are: Proportional

Proportional Taxes take the same percentage of income across all income groups.

3. A. True

4. Sean and Bob would both vote yes as the Marginal Benefit of the project exceeds their marginal cost but project will not be funded in the end as the Total Marginal Cost exceeds Total Marginal benefit. Sean and Bob may want to pay but Yvette will not.

5. If this same project were taking place in the private sector, a firm would not fund the project.

6. In private markets, decisions to provide goods or services to the market are generally made if marginal benefits exceed marginal costs

7. As a result, governments may approve projects whose costs exceed their benefits.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

okay lol !