The marginal tax rate is the

A. total amount of taxes paid as a percentage of total income.
B. increase in taxes as a percentage of an increase in income.
C. sum of all individual tax rates.
D. tax rate paid by those with the lowest family incomes.

Answer: B

Economics

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The fraction of each added dollar of income that is used for consumption is called the:

a. average propensity to consumer (APC). b. autonomous consumption rate (ACR). c. marginal consumption propensity (MCP). d. marginal propensity to consume (MPC).

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Trade results from:

A. comparative advantage. B. absolute advantage. C. self-sufficiency. D. diminishing returns.

Economics