Suppose a Poverty Program Has a Basic Benefit of $10,000,zero

question 18

Multiple Choice

Suppose a poverty program has a basic benefit of $10,000,zero deductions,and a breakeven level of income of $25,000.The marginal tax rate is ________ percent.

• A)2.50
• B)0.40
• C)0.20
• D)0.08

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Definitions:

Supply

The total amount of a product or service available for purchase at any given price or time.

Coefficient Of Elasticity

A measure used in economics to show how much the quantity demanded or supplied of a good responds to a change in its price or income level.

Special Sale

A promotional offer that temporarily reduces the price of items or services to encourage purchases.

Price Range

The spread between the highest and lowest selling price of a good or service in a market over a certain period of time.