If an Individual Earns an Additional $300 and Has to Pay

question 2

Multiple Choice

If an individual earns an additional $300 and has to pay an additional $93 in income tax,his or her average tax rate is

• A)3.1 percent.
• B)There is not enough information provided to answer this question.
• C)31 percent.
• D)93 percent.
• E)9.3 percent.

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Definitions:

Economy

The organized system of human activity involved in the production, consumption, exchange, and distribution of goods and services.

Point H

Typically used in graphical economic analysis to represent a specific point on a curve or graph, illustrating a particular economic condition or outcome.

Underemployed

A term describing individuals who are working in a capacity that is below their skills level, working part-time when they desire full-time employment, or are overqualified for their current position.

Unemployed

The state of being without a paid job despite actively looking for work.