Suppose the tax rate on the first $10,000 of income is 0 percent; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on income over $60,000. Family X has an income of $55,000. What is the tax liability of Family X?

A. $6,600
B. $16,500
C. $3,400
D. $7,500


Answer: D

Economics

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