Pat Calculates That for Every Extra Dollar She Earns, She

question 342

Multiple Choice

Pat calculates that for every extra dollar she earns, she owes the government 40 cents. Her total income now is $44,000, on which she pays taxes of $11,000. Determine her average tax rate and her marginal tax rate.

• A)Her average tax rate is 40 percent and her marginal tax rate is 25 percent.
• B)Her average tax rate is 40 percent and her marginal tax rate is 40 percent.
• C)Her average tax rate is 25 percent and her marginal tax rate is 25 percent.
• D)Her average tax rate is 25 percent and her marginal tax rate is 40 percent.

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Definitions:

Frequent Feedback

Regular and consistent feedback provided to individuals to inform them of their performance and areas for improvement.

Past Performance

An evaluation of an individual's or organization's previous achievements and work history as an indicator of future success.

Learning Goal Orientation

A preference to learn new things and develop competence in an activity by acquiring new skills and mastering new situations.

Goal Orientation

An individual’s goal preferences in achievement situations.