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:

Employee Turnover

The rate at which employees leave a company and are replaced by new employees over a given period.

Qualified Applicants

Individuals who meet the necessary skills, experience, and educational requirements for a job opening.

Recruiting

The process of finding, attracting, and hiring candidates for a job within an organization.

Diversification Levels

Degrees to which an organization expands its operations or investments into new areas that are distinct from its core activities.