Economists Define the Disposable Annual Income for an Individual by the Equation

question 91

Multiple Choice

Economists define the disposable annual income for an individual by the equation D = (1 - r) T, where T is the individual's total income and r is the net rate at which he or she is taxed. What is the disposable income for an individual whose income is $20,000 and whose net tax rate is 31%? ​

• A) $6,200
• B) $47,600
• C) $20,000
• D) $13,800
• E) $33,800

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Definitions:

Corporate Governance

The system of rules, practices, and processes by which a corporation is directed and controlled, aiming to balance the interests of its various stakeholders.

Publicly Held Corporations

Companies whose shares are traded on public stock exchanges, allowing for ownership by the general public.

Federal Legislation

Laws enacted by the national government of a country, in this case, the United States, which apply to all states and citizens.

Cost-Benefit Analysis

A systematic approach to estimate the strengths and weaknesses of alternatives; it is used to determine options that provide the best approach to achieve benefits while preserving savings.