If you would have to pay $8,000 in taxes on $90,000 taxable income and $10,000 in taxes on $94,000 taxable income, then the marginal tax rate on the additional $4,000 of income is Mutiple Choice 10 percent, and the average tas rate is s0 percent at the $94.000 income level 50 percent, ond the average tax rate is 20 percent at the S90.000 income eve s0 percent, but average tax rates cannot be determined from the intormation given 50 percent, and the averege tax rate is about 11 percent at the $94000 income level
If you would have to pay $8,000 in taxes on $90,000 taxable income and $10,000 in taxes on $94,000 taxable income, then the marginal tax rate on the additional $4,000 of income is Mutiple Choice 10 percent, and the average tas rate is s0 percent at the $94.000 income level 50 percent, ond the average tax rate is 20 percent at the S90.000 income eve s0 percent, but average tax rates cannot be determined from the intormation given 50 percent, and the averege tax rate is about 11 percent at the $94000 income level
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.10P
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