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beks73 [17]
3 years ago
14

Which of the following is a valid shortcoming of the use of foreign aid to eradicate​ poverty? A. It may not lead to a sizable i

ncrease in physical capital in poorer countries. B. It can lead to the polarization of the world economy. C. It mostly leads to the transfer of resources among rich countries. D. It is difficult to transfer aid to poor countries.
Business
1 answer:
solniwko [45]3 years ago
7 0

Answer:

The correct answer is letter "A": It may not lead to a sizable increase in physical capital in poorer countries.

Explanation:

Most underdeveloped countries rely on foreign aid to reduce the poverty rate. While this is could be the fastest method to relieve social problems it curses the underdeveloped country's economy to remain stagnant. <em>Countries providing aid mostly do it by providing goods of immediate use such as food or clothing but poor countries need investment to improve their industries, generate employment and in such a way increase individuals' income. </em>

Therefore, <em>physical capital is unlikely to grow in poorer countries depending on foreign nations' aid.</em>

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Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? What is his marginal rate if,
yulyashka [42]

Answer:

The question is not complete.

Here is the complete question:

Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the US tax rate schedule)

Required:

a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?

b. What is his marginal rate if, instead, he had $40,000 of additional deductions?

Here are the answers:

a. 24%

b. 12%

Explanation:

Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).

                                Chuck Marginal Tax Rate

a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:

= $75,000 + $40,000

= $115,000

Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.

b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:

= $75,000 - $40,000

= $35,000

The marginal tax rate for taxable income of $35,000 is 12% according IRS tax rate schedule.

Note: the interest is categorized as interest from municipal bond, so it is tax free.

It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.

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