Tim earns income of $60,000 per year and pays $21,000 per year in taxes. Tim paid 20 percent in taxes on the first $30,000 he earned. What was the marginal tax rate on the second $30,000 he earned?
a. 20 percent
b. 30 percent
c. 50 percent
d. 70 percent
c
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If the demand for money increases and the Fed wants interest rates to remain unchanged, which of the following would be appropriate policy?
A. Recall Federal Reserve notes from circulation. B. Buy bonds in the open market. C. Raise the discount rate. D. Raise the legal reserve requirement.
In a long-run equilibrium in a perfectly competitive market, firms are selling at a price equal to average cost
a. True b. False Indicate whether the statement is true or false
Which of the following generates a demand for dollars in the foreign exchange market?
A. Travel by foreign visitors in the United States. B. Transfers of money by foreign workers in the United States to relatives abroad. C. Foreign aid given by the United States. D. U.S. military installations abroad.
Ideally, an important aspect of a democracy is an ______.
a. informed electorate b. electorate that trusts authority figures c. equal distribution of resources d. obvious distinction among classes