If an Individual Earns an Additional $200 and Has to Pay

question 158

Multiple Choice

If an individual earns an additional $200 and has to pay an additional $25 in income tax, his or her marginal tax rate is

• A)25 percent.
• B)12.5 percent.
• C)2.5 percent.
• D)2 percent.
• E)40 percent.

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Definitions:

Shipbuilding

The construction of ships and other floating vessels, a critical industry for trade, transportation, and military purposes.

Ironworks Industry

The sector involved in the smelting of iron ore, casting, and the forging of iron and steel to produce various goods and structures.

Domination

A state of having power or control over something or someone, often in a manner that suppresses, marginalizes, or oppresses.

Political Divisions

The differences in opinions, ideologies, or policies that create distinct groups within a political system or between nations.