Fill in the following table with the number of hours that Sharon will work under
ID: 1224138 • Letter: F
Question
Fill in the following table with the number of hours that Sharon will work under this tax scheme, and with Sharon's and Paolo's incomes after taxes and transfers when the tax rate is 20%, 40%, 60%, and 80%, respectively.
On the following graph, use the blue points (circle symbol) to plot Sharon's total weekly income after taxes and transfers if the government chooses to set a tax of 0%, 20%, 40%, 60%, or 80% on her income. Next, use the purple points (diamond symbol) to plot Paolo's total weekly income after government transfers if the government chooses to set a tax of 0%, 20%, 40%, 60%, or 80% on Sharon's income and then transfers the entire tax revenue to Paolo.
Note: For example, if the government sets a 0% tax rate, then Sharon will earn $1,750 per week and Paolo will earn $900 per week. Therefore, your graph of Sharon's income should start at the point (0%, $1,750), and your graph of Paolo's income should start at the point (0%, $900). The second points on the graphs should have a horizontal coordinate of 20% and a vertical coordinate that corresponds to your answer from the previous question.
Sharon's IncomePaolo's Income0204060801002000180016001400120010008006004002000TOTAL WEEKLY INCOME (Dollars)PERCENT OF SHARON’S INCOME TAXED
A tax rate of maximizes the total income of society.
A tax rate of will result in complete income equality.
One measure of income inequality in this society is Paolo's share of total income after taxes (equality is maximized when Paolo's share is 50%). One measure of efficiency in this society is the combined total income of Paolo and Sharon.
On the following graph, illustrate the tradeoff between equality and efficiency by plotting total after-tax income (Paolo's and Sharon's incomes combined) against Paolo's share of total income. Use the green point (triangle symbol) to indicate the tradeoff when the tax rate is 0%. Use the blue point (circle symbol) to indicate the tradeoff when the tax rate is 20%. Finally, use the purple point (diamond symbol) to indicate the tradeoff when the tax rate is 40%. When plotting, round Paolo's share of income to the nearest percent. (Hint: You may wish to refer to your previous answers.)
Tax Rate Sharon's After-Tax Hourly Wage Hours Worked by Sharon Sharon's Weekly Income Paolo's Weekly Income (Percent) (Dollars) (Weekly) After Taxes and Transfers After Taxes and Transfers (Dollars) (Dollars) 0 50 35 1,750 900 20 40 40 30 60 20 80 10Explanation / Answer
may i know the individual cost levels
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