If a Family Earned an Additional $6,000 And, as a Consequence

question 74

Multiple Choice

If a family earned an additional $6,000 and, as a consequence, sustained a reduction of $3,600 in government benefits, the implicit marginal tax rate for this family would be

• A) zero.
• B) 45 percent.
• C) 60 percent.
• D) 75 percent.

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Definitions:

Erikson

A developmental psychologist known for his theory on the psychosocial development of humans, highlighting eight stages that span from infancy to adulthood.

Autonomy

The ability to make a knowledgeable, voluntary choice on one's own.

Shame and Doubt

A stage in Erik Erikson's psychosocial development theory where toddlers learn to exert autonomy, facing challenges of doubt and shame.

Self-description

The process by which an individual explains or identifies their own attributes, characteristics, or experiences.