Refer to the Information Provided in Table 19 -Related to the Economics in Practice on Page 393: Refer

question 160

Multiple Choice

Refer to the information provided in Table 19.8 below to answer the question(s) that follow.
Table 19.8
$$\begin{array} { | c | c | } \hline \text { Total Income } & \text { Total Taxes } \\\hline \$ 20,000 & \$ 2,000 \\\hline 40,000 & 4,800 \\\hline 60,000 & 9,000 \\\hline 80,000 & 16,000 \\\hline\end{array}$$
-Related to the Economics in Practice on page 393: Refer to Table 19.8. If income increases from $20,000 to $40,000, the marginal tax rate is

• A) 2%.
• B) 12%.
• C) 14%.
• D) indeterminate from this information.

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Definitions:

Cognitive Ability

The capacity to perform mental processes related to learning, thinking, reasoning, problem-solving, and memory.

Cultural Bias

The phenomenon of interpreting and judging phenomena by standards inherent to one's own culture, leading to a skewed understanding or assessment.

Tracking

Grouping, or stratifying, students in school on the basis of ability test scores.

Lower Tracks

Educational paths or course sequences in secondary schooling that are typically designed for students achieving below the average level, often criticized for reinforcing social inequalities.