The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000 . Emily paid $9,000 in taxes. What were her marginal and average tax rates?
a. 20 percent and 13.8 percent, respectively
b. 20 percent and 15 percent, respectively
c. 10 percent and 13.8 percent respectively
d. 10 percent and 15 percent respectively
a
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If real GDP is $800 million and aggregate labor hours are 20 million, labor productivity is ________
A) $40 per hour B) $16,000 million C) $40 million D) $160 per hour
A firm has excess capacity if its output is
A) less than the quantity at which marginal cost is minimized. B) less than the quantity at which economic profit is maximized. C) less than the quantity at which average total cost is minimized. D) more than the quantity at which average total cost is minimized.
Firms discount future profits at the interest rate r because
A) it is the interest rate on their debt. B) it is the same rate as for households. C) Ricardian equivalence holds. D) it has to equal the marginal productivity of capital in equilibrium.
Which of the following is a possible problem faced by potential management innovators?
A. Property rights in management innovations are ill-defined. B. Implementation of managerial innovations leads to the entry of new firms in the industry. C. The supply of skilled workers decreases after the implementation of innovations. D. Companies implementing managerial innovations need to pay higher corporate taxes.