Kathy Works Full Time During the Day as an Economist

question 206

Multiple Choice

Kathy works full time during the day as an economist and faces a 60 percent marginal tax rate. If Kathy were to get an offer to work a second job in the evenings doing consulting work for a local business for $10,000 per year, how much of this additional income would she be able to keep as net pay after taxes?

• A) $1,000
• B) $4,000
• C) $6,000
• D) $10,000

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Definitions:

Dollar Markup

The difference between the cost of a good or service and its selling price, expressed in dollar terms.

Ratchet-Style

A mechanism or approach that permits only incremental increases or improvements, often without the possibility of reversal.

Pruning Clippers

Gardening tools used for cutting and shaping plants by removing unnecessary or unwanted parts.

Markup Percent

The percentage increase in the selling price of goods beyond their cost, used by retailers to achieve a profit margin.