Suppose That in Addition to the $300,000 of Taxable Income

question 11

Multiple Choice

Suppose that in addition to the $300,000 of taxable income from operations, Liam's Burgers, Inc. received $25,000 of interest on state-issued bonds and $50,000 of dividends on common stock it owns in Sodas, Inc. Using the tax schedule in Table 2.3 what is Liam's income tax liability? What are Liam's average and marginal tax rates on total taxable income?

• A) $106,100, 33.68%, 39%, respectively
• B) $122,850, 39.00%, 39%, respectively
• C) $129,500, 34.53%, 39%, respectively
• D) $139,250, 37.13%, 39%, respectively

Understand the difference between normative and positive economic statements.

Recognize the role and importance of assumptions in economic theories.

Identify the challenges of applying the scientific method to economics due to the unpredictable nature of human behavior.

Calculate and interpret the slope of budget lines in various economic scenarios.

---

Definitions:

Four-Legged Walkers

Animals that use all four limbs to support their movement across a substrate, showcasing a quadrupedal mode of locomotion.

Land Dwellers

Organisms that live predominantly or entirely on land as opposed to in the water or air.

Notochord

A flexible rod-like structure in the embryos of all chordates, providing skeletal support and defining the primitive axis of the body.

Embryos

Early stages of development in multicellular organisms following fertilization.