Ron Works Full Time as a Teacher Making $50,000 While

question 235

Multiple Choice

Ron works full time as a teacher making $50,000 while his wife Ellen stays at home taking care of their two children. Ron's income puts the family in a tax bracket with a 40 percent marginal tax rate. Ellen receives a full-time job offer as an administrative assistant making $30,000 per year, however to take the job would require the family to start paying $8,000 per year in child care expenses. If Ellen were to accept the job offer, after paying taxes and subtracting child care expenses, by how much would the family's net disposable income increase?

• A) $8,000
• B) $10,000
• C) $20,000
• D) $30,000

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Definitions:

BCG Matrix

A strategic business tool designed by the Boston Consulting Group to help organizations evaluate and manage the relative positions of their business units or products in terms of market growth rate and market share.

Stars

High-performing and highly valuable members or units within an organization known for contributing significantly to its success.

Question Marks

Products or business units that operate in high growth markets but have a low market share, often requiring significant resources to become profitable.

Goal Displacement

A situation where the primary goal is overshadowed by a secondary goal, leading to a shift in focus.