Lonnie is filing his federal income tax return with the 1040ez form, and he
received two w-2 forms. on one, $2390 in federal income tax was withheld,
and $780 was withheld on the other. if lonnie received a making work pay
credit of $400, and if lines 9a and 9b in the payments, credits, and tax
section below are $0, what should he enter on line 10?
payments.
credits,
and tax
3
9
federal income tax withheld from formis) w2 and 1099
making work pay credit (see worksheet on back)
earned income credit to see pape 13)
nectable combat pay election
add lines 7.8.anda. these are your total payments and credits
tau. use the amount on line 6 above to find your tax in the tax table on pages 27
through 35 of the instructions. then, enter the tax from the table on this line
10
o a. $3170
b. $2790
o c. $2770
o d. $3570

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

Mr. pines is considering buying a house and renting it to students. the yearly operating costs are $1,900. the house can be sold for $175,000 at the end of 10 years and it is considered 18% to be a suitable annual effective interest rate. if the house costs $100,000 to purchase, how much would you need to charge your tenants each year in rent? (assume a single payment for the years rent at the end of each year)

How is the role of government determined in the american free enterprise system?