In a recent study the top 20 percent of Americans had 49.7 percent of the income before

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In a recent study the top 20 percent of Americans had 49.7 percent of the income before taxes and transfers and 48.3 percent after taxes and transfers. The same figures for the bottom 20 percent were 3.4 percent and 4.3 percent, respectively.

a. How much do taxes and transfers “cost” the upper quintile?

b. How much discretionary income should they be willing to invest to change this situation?

c. How much discretionary income does the bottom quintile have to prevent such a change? (Institutionalist)

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Microeconomics

ISBN: 9781260507140

11th Edition

Authors: David Colander

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Question Posted: Mar 14, 2024 04:02 AM

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In a recent study the top 20 percent of Americans had 49.7 percent of the income before

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a To calculate how much taxes and transfers cost the upper quintile we can subtract the percentage o...View the full answer

Microeconomics

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