In Econoland in 2005, People with Incomes Between $20,000 and $30,000

question 43

Multiple Choice

In Econoland in 2005, people with incomes between $20,000 and $30,000 paid 12% of their income in taxes and people with incomes between $30,001 and $40,000 paid 15%.In 2005, the CPI in Econoland equaled 1.20, and it increased to 1.26 in 2006.If the government of Econoland wants to keep households with a given real income from being pushed up into a higher tax bracket by inflation, the $20,000-to-$30,000 bracket will be changed in 2006to:

• A)$15,873-to-$23,810
• B)$21,000-to-$31,500
• C)$24,000-to-$37,800
• D)$25,200-to-$37,800

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Definitions:

Carotid Chemoreceptors

Sensory receptors located in the carotid arteries that detect changes in blood oxygen levels, helping regulate breathing.

Baroreceptors

Sensory nerve endings located in the walls of blood vessels that detect changes in blood pressure and help regulate it.

Lymphatics

Part of the lymphatic system, involving the network of vessels, nodes, and organs responsible for transporting lymph and managing bodily fluids.

Edema

A condition characterized by an excess of watery fluid accumulating in the cavities or tissues of the body.