Figure 3-1 -Refer to Figure 3-1.The Opportunity Cost of 1 Bushel of of 1

question 20

Multiple Choice

Figure 3-1

-Refer to Figure 3-1.The opportunity cost of 1 bushel of wheat for Cliff is

• A)1/3 bushel of corn.
• B)2/3 bushel of corn.
• C)1 bushel of corn.
• D)3/2 bushels of corn.

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Definitions:

Average Tax Rate

The average tax rate is the percentage of total income that an individual or corporation pays in taxes, calculated by dividing total tax paid by total income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the rate applied to each additional dollar of income.

Social Security Tax

A payroll tax collected to fund the Social Security program, which provides benefits to retirees, disabled individuals, and survivors.

Taxable Income

The portion of income subject to tax by the government after all deductions and exemptions.