2017 Fall. Online Microeconomics 202-301 Homework: Homework # 7 Score: 0 of 1 pt

Question

2017 Fall. Online Microeconomics 202-301 Homework: Homework # 7 Score: 0 of 1 pt Chapter Problem 6 24 of 24 (16 HW Score: 62.5%, 15 of 24 pts ne Question Help * The table shows the distribution of market income in an economy The distributed equally to the 40 percent of the population with lowest market income. ncome by taxing the 60 percent of households with the highest market incomes 10 percent, and paying the tax collected as beneftes Market income Income tax rate tax and benefits (percentage of total(percentage of (percentage of total income Households Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent 10 10 10 Enter your answer in the edit fields and then click Check Answer

Explanation / Answer

The boxes will be filled from lowest 20% to highest 25 in the following order;-

9.30- LOWEST 20%

13.30- SECOND 20%

18- THIRD 20%

27- FOURTH 20%

32.40- HIGHEST 20%

Working are as follows-

Since tax rate is 10% therefore, tax on third , fourth and highest 20% will be 2,3 &3.6 respectively. So, the income after tax for third, fourth and highest 20% will be 18,27 & 32.4 respectively.

Also the tax collected will be distributed equally between the lowest and second 20% so their income would be 9.30 & 13.30 respectively.

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