If a Family Earned $10,000 And, as a Consequence, Sustained

question 105

Multiple Choice

If a family earned $10,000 and, as a consequence, sustained a reduction of $4,000 in government benefits, the family's implicit marginal tax rate would be

• A) 10 percent.
• B) 40 percent.
• C) 60 percent.
• D) 75 percent.

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Definitions:

Outstanding Balance

The amount of money that is still owed or due on a financial account or loan.

Invoice

A document issued by a seller to a buyer that lists goods or services provided along with their costs, signifying an obligation to pay.

Payment

The act of giving money in exchange for goods, services, or to fulfill an obligation.

ROG

Rate of Growth, representing the percentage increase in a particular variable over a specified period, often used in economic and financial contexts.