Using the data in Figure 2.3, (a) Compute the average income of U.S. households. (b) If all

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Using the data in Figure 2.3,

(a) Compute the average income of U.S. households.

(b) If all incomes were equalized by government taxes and transfer payments, how much would the average household in each income quintile gain (via transfers) or lose (via taxes)?

(i) Highest fifth

(ii) Second fifth

(iii) Third fifth

(iv) Fourth fifth

(v) Lowest fifth

(c) What is the implied tax rate (i.e., tax ÷ average income) on the highest quintile?

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The Micro Economy Today

ISBN: 9781118152003

15th Edition

Authors: Bradley R. Schiller, Karen Gebhardt

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Question Posted: Nov 19, 2024 03:00 AM

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Using the data in Figure 2.3, (a) Compute the average income of U.S. households. (b) If all

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The Micro Economy Today

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