Sue earns income of $80,000 per year. Her average tax rate is 50 percent. Sue paid $5,000 in taxes on the first $30,000 she earned. What was the marginal tax rate on the first $30,000 she earned, and what was the marginal tax rate on the remaining $50,000?
a. 6.25 percent and 50.00 percent, respectively
b. 10.00 percent and 70.00 percent, respectively
c. 16.67 percent and 60.00 percent, respectively
d. 16.67 percent and 70.00 percent, respectively
d
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Decreasing marginal returns occur in the short run as more labor is hired to work in a fixed sized plant because
A) less efficient and less productive workers are hired. B) adding more workers exhausts the possible gains from specialization. C) the entrepreneur does not know how to manage more workers. D) each worker will produce more than the worker previously hired. E) the plant becomes less specialized.
Public choice theorists assert that persons who change jobs from, say, a government position to a business position, sometimes alter their work behavior and attitudes because
A) they want to fit in and be liked by their fellow workers. B) they are acting rationally by weighing the costs and benefits of certain behavior in different work settings. C) they feel that if they change jobs, they should also change their behavior. D) their new boss tells them it is in their best interest.