Sue earns income of $80,000 per year. Her average tax rate is 50 percent. Sue paid $5,000 in taxes on the first $30,000 she earned. What was the marginal tax rate on the first $30,000 she earned, and what was the marginal tax rate on the remaining $50,000?
a. 6.25 percent and 50.00 percent, respectively
b. 10.00 percent and 70.00 percent, respectively
c. 16.67 percent and 60.00 percent, respectively
d. 16.67 percent and 70.00 percent, respectively
d
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Samantha decides to withdraw $10,000 from her savings account and invest it all in the stock market. Her total economic costs
A) equal $10,000. B) are independent of the interest she enjoyed in her savings account. C) are affected by the interest she enjoyed in her savings account. D) are determined solely by the commission she is charged for the purchase of stock.
If a perfectly competitive firm finds that it is producing an amount of output such that MR > MC and P > AVC, it will
A) leave the industry. B) decrease its output. C) increase its output. D) not change its behavior.
Capital controls are most often aimed at slowing or eliminating movements of
A) reserve assets. B) foreign direct investment. C) foreign portfolio investment. D) nonreserve government assets. E) None of the above.
If mayonnaise and Miracle Whip are substitutes, then which of the following would increase the demand for Miracle Whip?
a. a decrease in the price of Miracle Whip b. an increase in the price of mayonnaise c. a decrease in the price of mayonnaise d. Both a and b are correct.