If Olivia's Income Increases from $40,000 to $50,000 and Her

question 228

Multiple Choice

If Olivia's income increases from $40,000 to $50,000 and her tax liability increases from $6,000 to $9,000, which of the following is true?

• A) Her marginal tax rate is 18 percent in this range.
• B) Her marginal tax rate is 30 percent in this range.
• C) Her average tax rate was 22.5 percent when her income was $40,000.
• D) The tax structure must be regressive in the range between $40,000 and $50,000.

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Definitions:

Functional Area

Specific sectors within a business or organization dedicated to particular tasks or operations, such as marketing, finance, or human resources.

Consumer Protectionism

Policies and measures designed to protect the rights and welfare of consumers by ensuring fair trade and accurate information in the marketplace.

Government Entities

Organizations or agencies that are part of the state or federal government and are responsible for administering specific functions.

Consumers

Individuals or groups that purchase or have the potential to purchase goods and services for personal use.