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:

Knowledge

Information, understanding, or skill that one gets from experience or education; the theoretical or practical understanding of a subject.

Information-Processing Perspective

A psychological approach that likens human thought to the workings of a computer, focusing on the ways we take in, store, and retrieve information.

Cognitive Development

The process of growth and change in intellectual capabilities that influence a person’s behavior and learning abilities.

Psychosocial Development

The process of personality and emotional growth that occurs through interactions with others across the lifespan.