Scenario 20-4 Suppose the Government Implemented a Negative Income Tax and Used

question 153

Multiple Choice

Scenario 20-4
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/5 of income) - $15,000
-Refer to Scenario 20-4. A family earning $50,000 before taxes would have how much after-tax income?

• A)-$5,000
• B)$40,000
• C)$45,000
• D)$55,000

---

Definitions:

Perceptual Set

An expectation of what will be perceived, which can affect what actually is perceived.

Absolute Threshold

The minimum intensity of a stimulus that is required to be detected at least 50% of the time by a subject.

Difference Threshold

The minimum noticeable difference that a person can detect between two stimuli 50% of the time; also known as the just noticeable difference (JND).

Just Noticeable Difference

The smallest difference in a stimulus that an organism can barely perceive.