Suppose that the government taxes income in the following fashion: 30 percent of the first $20,000 . 50 percent of the next $30,000 . and 60 percent of all income over $50,000 . Ted earns $40,000 . and Robin earns $60,000 . Which of the following statements is correct?
a. Ted's marginal tax rate is 60 percent, and his average tax rate is 50 percent.
b. Ted's marginal tax rate is 50 percent, and his average tax rate is 40 percent.
c. Robin's marginal tax rate is 50 percent, and her average tax rate is 45 percent.
d. Robin's marginal tax rate is 60 percent, and her average tax rate is 40 percent.
b
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In the circular flow model, households supply resources such as labor services in the factor market
Indicate whether the statement is true or false
When the demand for loanable funds rises, the amount of money borrowed will ___________.
A. rise B. decline C. be unchanged
Joe trades an apple to Winston for two oranges. Because the exchange is voluntary, we can conclude that
a. Joe is better off because he gets two things but Winston is worse off because he gives up more items than he receives. b. Winston is better off because he gives more than he receives. c. both Joe and Winston are worse off. d. both Joe and Winston are better off.
On June 8, Williams Company issued an $90,000, 12%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? Round your answer to the nearest whole dollar
a. $100,800 b. $93,600 c. $90,000 d. $10,800