{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

public_ps3_sp09 - NAME PAM 204 Problem Set#3 Complete the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
NAME_________________________ PAM 204- Problem Set #3 Complete the problem set on these four sheets of paper. Circle your answers to the multiple choice questions. Note that there are seven problems. PS #3 is out of 10 points. #1) Consider an EITC program in which the maximum credit is $3000. An individual who has earned income between $7000 and $11,000 receives the maximum credit (ie- someone who has earned income of $10,000 will have total income of $13,000 because of the tax credit). An individual who has earned income of $15,000 has total income of $16,000. What is the implicit tax rate that the individual who has earned income of $15,000 faces? Round your answer to two decimal places if necessary. (1 point) #2) Consider an EITC program in which the maximum credit is $4000. An individual who has earned income between $8000 and $12,000 receives the maximum credit (ie- someone who has earned income of $10,000 will have total income of $14,000 because of the tax credit). An individual who has earned income of $20,000 has total income of $21,000. What is the implicit tax rate that the individual who has earned income of $20,000 faces? Round your answer to two decimal places if necessary. (1 point)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}