If Maureen Lives in a Country Where No Taxes Are

question 6

Multiple Choice

If Maureen lives in a country where no taxes are levied on the first $20,000 of income and a 10% tax is levied on all income above $20,000, what is her marginal tax rate if she has an average tax rate of 5%?

• A)5%
• B)10%
• C)15%
• D)25%