All categories

3 years ago

How does earned income, like wages, differ from unearned income, like interest or rental

Business

1 answer:

Gemiola [76]3 years ago

6 0

Answer:

Your tax liability is based on your overall income, so it's important to understand the different types of income and how the IRS treats them. Earned income and unearned income each include diverse forms of payments and have unique tax implications.

Explanation: Hope this helps <3

You might be interested in

Suppose the government decides to impose a binding price ceiling on the market. 1. Please place the Price Ceiling line segment t

aniked [119]

Answer: After price ceiling is implemented a shortage supply exists if the price ceiling is below the market price

Explanation:

price ceiling is wen the government imposes the maximum price that should be charged for a good or service. The effects of price ceiling depends on whether government sets the maximum price that should be charged for a good or service below or above the market price,

if the government sets the price above the market price, price ceiling will not affect the market, however if the the government sets the price below the market price price ceiling will cause changes in the quantity demanded and quantity supplied.

Please refer to the attachment, in the attachment we see a market that is in Equilibrium and operating efficiently at price P' and Quantity demanded and supply is Q'. when government sets price ceiling below the market price (below P') the quantity demanded will increase to Qdem while quantity supplied decreases to Qsup. This will cause a shortage in the market because quantity demanded is higher than quantity supplied thus creating a Dead weight loss labelled by " DWL "

4 0

3 years ago

If fiscal policy is used to correct a recessionary gap in the economy, what would most likely occur in the short run?

lara31 [8.8K]

your answer is B) HOPE THIS HELPS

8 0

3 years ago

Discuss whether consumers will gain or lose from trade in the following cases below:________

anygoal [31]

Answer:

a. Gain

b. Lose

Explanation:

a. The consumers in Importing country will gain in a perfect competition because imports by the country will increase the variety of products available and in a perfect competition every seller have the equal chance to sell its goods, so in order to increase sales the sellers may reduce prices which will result in a gain for the consumers.

b. The consumers in exporting country will lose in a perfect competition because the country is exporting the goods to another country and so the country exporting the goods will be left with limited goods and due to equal demand the prices will remain same or may increase if demand is increased which will result in a loss for the consumers of goods in a exporting country.

5 0

4 years ago

The federal income tax law allows individuals whose property is destroyed by a natural disaster such as a fire or hurricane to r

Step2247 [10]

Answer: Horizontal Equity of tax

Explanation:

The Horizontal equity of cash is a logic that people of similar assets and income should be paying the same taxes thereby encouraging tax neutrality.

A person whose property is destroyed by a natural disaster such as a fire or hurricane will see their tax paying ability diminished and so should be paying a tax that is reflective of their reduced number of assets and the money they will have to pay to replace it.

7 0

3 years ago

Decide whether each of the following statements is true or false for each of three different types of market: perfect competitio

GuDViN [60]

Answer:

THE ANSWERS ARE BELOW:

Explanation:

a. Firms equate price and marginal cost

Perfect competition: TRUE

Monopoly: False

Monopoly competition: false

b. Firms equate marginal revenue and marginal cost.

Perfect competition: TRUE

Monopoly: TRUE

Monopoly competition: TRUE

c. Firms earn economic profits in the long run

Perfect competition: FALSE

Monopoly: TRUE

Monopoly competition: FALSE

d. Firms produce the quantity that minimizes long-run average cost.

Perfect competition: TRUE

Monopoly: FALSE

Monopoly competition: FALSE

e. New firms are free to enter this industry.

Perfect competition: TRUE

Monopoly: FALSE

Monopoly competition: TRUE

8 0

4 years ago