Pat calculates that for every extra dollar she earns, she owes the government 40 cents. Her total income now is $44,000 . on which she pays taxes of $11,000 . Determine her average tax rate and her marginal tax rate
a. Her average tax rate is 40 percent and her marginal tax rate is 25 percent.
b. Her average tax rate is 40 percent and her marginal tax rate is 40 percent.
c. Her average tax rate is 25 percent and her marginal tax rate is 25 percent.
d. Her average tax rate is 25 percent and her marginal tax rate is 40 percent.
d
Economics
You might also like to view...
What would be the impact of a minimum wage that is set below the equilibrium wage that would otherwise prevail in the labor market?
What will be an ideal response?
Economics
For a given decrease in supply, the condition of demand that will result in the most significant change in price is when demand is
A. inelastic. B. elastic. C. perfectly elastic. D. perfectly inelastic.
Economics