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Net Income Was $65,000 in Year 1 and $50,000 in Year

question 98

Multiple Choice

Net income was $65,000 in Year 1 and $50,000 in Year 2. The percentage increase or decrease in net income was:


Definitions:

Proportional

Proportional describes a relationship or ratio that maintains the same relative size or aspect between items or variables.

Regressive

Refers to a tax system in which the tax rate decreases as the taxable amount increases, often placing a heavier burden on low-income earners.

Progressive

A political and social philosophy advocating for reforms that aim to reduce inequality, improve social justice, and enhance welfare.

Marginal Tax Rate

The rate of tax applied to the last dollar of income, showing the percentage of tax paid on any additional dollar earned.

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