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Sublight2097 Sublight2097
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9 years ago
Suppose a single-parent father with four children receives these welfare benefits from the government each month: $400 in cash, $200 in food stamps, and $100 in medical benefits. If the father takes a job paying $1000 per month he will lose all these benefits and will also pay $100 in income and social security taxes. His earnings from the job are consequently being taxed at an effective marginal rate of
A) 80%.
B) 60%.
C) 40%.
D) 20%.
E) 10%.
Textbook 
The Economic Way of Thinking

The Economic Way of Thinking


Edition: 13th
Authors:
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SydnieSydnie
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9 years ago
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Sublight2097 Author
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#2
8 years ago
Another one in the books, marking it solved.
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