4-2 (Key Question) Assume that the five residents of Econoville receive incomes of $50‚ $75‚ $125‚ $250‚ and $500. Present the resulting personal distribution of income as a graph similar to Figure 4.2. Compare the incomes of the lowest and highest fifth of the income receivers. The distribution of income is quite unequal. The highest 20 percent of the residents receive 10 times more income than the lowest 20 percent. 4‑4 (Key Question) What are the three major legal forms of business
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market establish the value of work based upon a person’s abilities and skill set. • Make the state an employer of last resort to ensure that anyone who wants a job receives one. These jobs will serve community needs and be paid from a national‚ progressive income tax. The wage rate will be one half of the established poverty level. Jobs of last resort will require a minimum of forty hours per week of attendance on the job. • Adjust the number of hours in a work week inversely to the number of
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the amount necessary to allow an individual to buy the same market basket of goods that the average urban wage earner can afford 4. If the marginal tax rate equals the average tax rate‚ the tax would be proportional. regressive. progressive. uniform. 5. Air pollution generated by a steel mill is an example of a positive production externality. a negative production externality. a public good. the free-rider problem. 6. In 2007 about 14% of personal income
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Progressive Era is when the world was going through a political and social change. Health care was starting to become more organized and structured‚ the creating of new medicine was becoming for popular than using old remedies and public health awareness was growing by providing information to the people. Health care had no choice but to change because of the changing population. People were living longer and the population of people was vastly increasing. With the increase of people health care
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Definition of Tax ; The word ‘tax’ has been derived from the French word ‘taxe’ and the Latin word ‘taxare’ which means ‘to charge’. Tax is a contribution exacted by the state. It is a non-penal but compulsory and unrequited transfer of resources from the private to the public sector‚ levied on the basis of predetermined criteria. According to P. E. Taylor‚ “ Taxes are compulsory payment to government without expectation of direct return in benefit to the taxpayer. According to
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Lafora progressive myoclonus epilepsy is a fatal form of autosomal recessive neurodegenerative disorder that is characterized by the presence of insoluble polyglucosan inclusion bodies‚ known as Lafora bodies. They are generally found in many of the body’s tissues such as within the cytoplasm of the cells of the heart‚ liver‚ muscle‚ and skin but the signs and symptoms of the disease are limited to the nervous system. The disease presents with epileptic seizures followed by progressive central nervous
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The U.S. Economy: Private and Public Sectors ANSWERS TO END-OF-CHAPTER QUESTIONS 4-1 4-2 4-3 Distinguish between the functional and personal distribution of income. Which is being referred to in each of the following statements? “The combined share of wage income and proprietary income has remained remarkably stable at about 80 percent since the Second World War.” “The relative income of the richest households is higher today than in 1970.” The functional distribution of income shows
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very generous‚ that most of the people owe little or no tax on salaries. Hong Kong has no tariffs on imports‚ no general sales or value – added tax and no personal tax on income from financial assets. It has something called a “Dual Tax” which is progressive tax rates on labor income. Also‚ the low tax on profits brings in a lot more revenue than salary taxes‚ compared to the United States‚ which collects little from profits taxes that are twice as high. Hong Kong is one of the world’s
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1. Introduction of GST Goods and service tax were first deliberated in 2005 with the intention to introducing it in 1st January 2007. However‚ it was withdrawn in the following year. In 2009‚ GST was revived with a proposed rate of 4% to replace current Sales Tax of 10% and Service Tax of 5% in a bid to diversify national revenues. However‚ the idea of GST still end up floating around as it has now been officially deferred. 2. Concept of GST Goods and Service Tax (GST)‚ also known as Value Added
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Introduction Taxes are the major source of mobilizing internal resources of an economy. Bangladesh revenue structure has been burdened by taxes from indirect sources for long time and usually characterized by heavy import and excise duties. To cope with the challenge due to globalization‚ government of many such countries has to cut down such duties and levies. It seems that government might have to collect more money either through VAT (Value Added Tax) or from direct taxes. In Bangladesh VAT introduced
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