The Table Given Below Shows the Annual Incomes of a Family

question 101

Multiple Choice

The table given below shows the annual incomes of a family of four and the corresponding transfer incomes. Table 33.3
Refer to Table 33.3.Suppose the government changes the guaranteed income floor to $3, 000.What is the new break-even level of income if the negative income tax rate is changed to 20 percent?

• A)$3, 000
• B)$15, 000
• C)$6, 000
• D)$5, 000
• E)$30, 000

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Definitions:

Conglomerate Acquisition

The purchase of a company by a conglomerate, which is a large corporation that owns a number of smaller companies in different industries.

Ford

Ford Motor Company is a global automotive and mobility company based in the United States, known for manufacturing and selling automobiles and commercial vehicles.

K-Mart

A retail chain that was once one of America's leading discount stores, known for its blue light specials.

Tax-Free Acquisition

An acquisition in which the acquired company's shareholders do not have to pay taxes on the securities or cash they receive as part of the acquisition deal.