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    output (income) per year will have to be produced in the world

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    How much more output (income) per year will have to be produced in the world
    (a) Just to provide the 2.7 billion "severely" poor population with $1 more output per day? $ _______
    (b) To raise the incomes of the world's "severely poor" population (income less than $2 per day)
    to the official threshold of U.S. poverty (roughly $5,000 per year per person)? $ ________

    (a) Assuming a 10 percent sales tax is levied on all consumption, complete the following table:

    Sales Percent of
    Income Consumption Tax Income Paid in Taxes
    $10,000 $12,000 ______ __________
    20,000 18,000 ______ __________
    40,000 32,000 _______ __________
    80,000 60,000 ________ __________
    (b) Is the sales tax progressive or regressive?

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    https://brainmass.com/economics/poverty/output-income-per-year-produced-world-395111

    Solution Preview

    How much more output (income) per year will have to be produced in the world

    (a) Just to provide the 2.7 billion "severely" poor population with $1 more output per day?

    $2.7 billion. It will be $1 per person for 2.7 billion people.

    (b) To raise the incomes of the world's "severely poor" population (income less than $2 per day)
    to the official threshold of U.S. poverty (roughly $5,000 per year per person)?

    $13.5 trillion. ...

    Solution Summary

    This solution evaluates the sales tax as progressive or regressive.

    $2.19