If personal income up to and including $25,000 is not taxed, income of $25,001 to $50,000 is taxed at 10%, and income over $50,000 is taxed at 20%, then a family earning an income of $75,000 will pay an AVERAGE tax rate of:

a. 5%
b. 20%
c. 7.5%
d. 10%


Ans: d. 10%

Economics

You might also like to view...

For a normal good, the income and substitution effect work in the same direction. For an inferior good, the income and substitution effects work in opposite directions

Does this imply that the demand curve for an inferior good is upward sloping? Explain.

Economics

Which of the following describes the out-of-pocket costs a firm pays?

a. Revenue costs b. Explicit costs c. Economic costs d. Implicit costs

Economics

Which of the following is not a question that macroeconomists address?

a. Why is average income high in some countries while it is low in others? b. Why does the price of oil rise when war erupts in the Middle East? c. Why do production and employment expand in some years and contract in others? d. Why do prices rise rapidly in some periods of time while they are more stable in other periods?

Economics

China's economy did not decline at all during its transition from communism to capitalism

Indicate whether the statement is true or false

Economics