Refer to Scenario 19.1 below to answer the question(s) that follow. SCENARIO 19.1: An individual earning $60,000 pays $12,000 in taxes. The marginal tax rate on any income earned above $60,000 is 25%. Refer to Scenario 19.1. When this person earns $60,000, her average tax rate is
A. 5%.
B. 20%.
C. 25%.
D. indeterminate from this information.
Answer: B
You might also like to view...
Checks and credit cards are NOT considered money because they
A) are issued by banks, not the Federal Reserve. B) are not the means of payment. C) typically require an identification requirement, such as your driver's license. D) are not backed by all commercial banks.
An increase in government spending
A) increases consumption and output. B) increases consumption, decreases output. C) decreases consumption, increases output. D) decreases consumption and output.
The demand for money for which the purpose is making unexpected purchases or meeting emergencies is considered to be part of
A) precautionary demand. B) transactions demand. C) asset demand. D) savings demand.
Foreign aid, royalties earned abroad, and long-term capital flows are part of the current account
a. True b. False Indicate whether the statement is true or false