​Assume a Small Town Decides to Build a Park by Imposing

question 20

Multiple Choice

​Assume a small town decides to build a park by imposing a $2,000 lump-sum tax on each household. If a household's income rises from $50,000 to $75,000, its marginal tax rate is:

• A)​0%
• B)​2.67%
• C)​4%
• D)​8%

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Definitions:

Manufacturer's Branch

A local office or division of a manufacturing company responsible for distributing its products in a specific geographical area.

Wholesaling Activities

Encompasses the operations involved in selling goods or merchandise to retailers, other merchants, or industrial, commercial, and institutional users, but not to consumers directly.

Producer

An entity or individual that creates goods or services, ranging from physical products to digital or intellectual properties.

Conventional Brokers

Intermediaries that facilitate transactions between buyers and sellers within traditional markets.