Under a Progressive Tax System,Elaine Earned a Salary for the Year

question 63

Multiple Choice

Under a progressive tax system,Elaine earned a salary for the year that placed her in a tier that paid a marginal tax rate of 40 percent for all income earned over $150,000 but less than $415,000.Which of the following statements is true?

• A) Elaine's average tax rate was less than 40 percent.
• B) Elaine earned less than $150,000.
• C) Elaine's average tax rate was greater than 40 percent.
• D) Elaine earned a $272,000 salary.
• E) Elaine earned greater than $415,000.

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Definitions:

Marginal Cost

The additional cost resulting from the production of one more unit of a product or service.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available for everyone to consume, regardless of who pays for them.

Production

The process of creating goods and services from various inputs like labor, land, and capital.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available for everyone to use without preventing others from using them as well.