TenTec. in Sevierville, TN makes commercial and amateur radio equipment including receivers, transceivers, antenna tuners, linear amplifiers, etc. Their taxable income last year was $720,000. They have established a new line of electronic equipment that is on sale this year, and expected to add another $140,000 to taxable income. a) Determine the effective (average) tax rate on all of last year’s taxable income. b) Determine the effective (average) tax rate on all of this year’s taxable income. c) Determine the incremental tax rate. d) Determine the marginal tax rate this year.

Stormie zanzibar owns a bakery in the fictitious country of olombia. each month the government’s market ministry mails her a large list of the regulated price of goods which include products like bread, muffins and flat bread. the list also dictates the types of goods she can sell at the bakery and what she is to charge. because of the regulations placed on these goods, stormie has increased her production of sweets, pies, cakes, croissants and buns and decreased her supply of breads, muffins and flat bread. she has taken these steps because the sweet goods’ prices are not government controlled. stormie zanzibar lives under what type of economy?