Compute the Tax Rates for the Three Taxpayers Shown in Table

question 23

Multiple Choice

Compute the tax rates for the three taxpayers shown in Table 33.1.Then use the table to answer the indicated question. $\begin{array}{|c|r|r|r|r|r|}\hline \text { Taxpayer } & \begin{array}{c}\text { Income } \\\text { (Dollars) }\end{array} & \begin{array}{c}\text { Taxable } \\\text { Income } \\\text { (Dollars) }\end{array} & \begin{array}{c}\text { Taxes Paid } \\\text { (Dollars) }\end{array} & \begin{array}{c}\text { Effective Tax } \\\text { Rate(Percent) }\end{array} & \begin{array}{c}\text { Nominal Tax } \\\text { Rate(Percent) }\end{array} \\\hline 1 & \$ 200,000 & \$ 100,000 & \$ 6,000 & \% & \% \\\hline 2 & 100,000 & 80,000 & 8,000 & \% & \% \\\hline 3 & 60,000 & 48,000 & 12,000 & \% & \% \\\hline\end{array}$
In Table 33.1,the effective tax rate for taxpayer 1 is

• A)3.0 percent.
• B)6.0 percent.
• C)8.0 percent.
• D)50.0 percent.

Identifying factors contributing to poor and risky decision-making in both individual and group contexts.

Understanding the phenomena of diffusion of responsibility and how it affects decision-making in groups.

Distinguishing between individual and group decision-making, including their advantages and disadvantages.

Comprehending strategies to prevent groupthink and enhance decision quality within groups.

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Definitions:

Economy

The method by which goods and services are produced, distributed, and consumed in a specific geographical area.

Specialization

The process of focusing effort and resources on a particular area of expertise or production to increase efficiency and output.

Barter System

An economic system where goods and services are directly exchanged for other goods and services without the use of money.

Monetary Exchange

The process of trading goods and services using money as a medium of exchange rather than direct barter.