Suppose a state has the following individual income tax structure.The first $20,000 that an individual earns is taxed at 5%. The next $30,000 is taxed at 10%. Any income exceeding $50,000 is taxed at 20%.Based on this tax structure, if a person's income is equal to $60,000 . his average tax rate is equal to:
a. 15%
b. 10%
c. 11.67%
d. 20%
c
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A market system works very well in solving some basic problems of the economy but it fails in some cases. Provide examples.
What will be an ideal response?
The term that is used to refer to a situation in which one party to a transaction has more or better information than the other party is
A) adverse selection. B) asymmetric information. C) moral hazard. D) deceptive trade practices.
If Happy Campers, Camping R Us, and Camp with Us are all competing in the camping market and Happy Campers consistently is the first to change prices, Best Beds might be ________.
A) signaling to the other firms to consistently raise their prices B) signaling to the other firms to consistently maintain their prices C) signaling to the other firms to consistently lower their prices D) offering to be the price leader
A soil bank program usually accompanies a price ceiling program in agriculture
Indicate whether the statement is true or false