Suppose the government taxes 25 percent of the first $60,000 of income and 40 percent of all income above $60,000 . For a person earning $200,000 . the marginal tax rate is
a. 25 percent, and the average tax rate is 32.5 percent.
b. 25 percent, and the average tax rate is 36 percent.
c. 40 percent, and the average tax rate is 32.5 percent.
d. 40 percent, and the average tax rate is 36 percent.
d
Economics
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In an unfunded pension system where current contributions are paid out to current beneficiaries, the total amount of funds available to invest _____ and the interest rate _____
a. falls; falls b. rises; rises c. falls; rises d. rises; falls
Economics
In the presence of no externalities,
A) social marginal cost exceeds private marginal cost. B) social marginal cost is less than private marginal cost. C) social marginal cost equals private marginal cost. D) social marginal cost and private marginal cost cannot be compared.
Economics