Refer to Scenario 19

question 6

Multiple Choice

Refer to Scenario 19.1 below to answer the question(s) that follow.
SCENARIO 19.1: An individual earning $60,000 pays $12,000 in taxes. The marginal tax rate on any income earned above $60,000 is 25%.
-Refer to Scenario 19.1. When this person earns $70,000, her average tax rate is

• A) 20.7%.
• B) 22.5%.
• C) 25%.
• D) indeterminate from this information.

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Definitions:

Complimentary

Refers to something provided for free or at no cost as a courtesy or bonus.

Shock

A sudden upsetting or surprising event or experience, or the physical and emotional reaction to such an event.

Curiosity

A strong desire to know or learn something, driving individuals to seek out new information and experiences.

Product

An item or service created through a process and offered in the market to satisfy a specific need or want.