According to Projections for 2016 by the Tax Policy Center

question 222

Multiple Choice

According to projections for 2016 by the Tax Policy Center, the 20 percent of U.S.taxpayers who make the highest incomes

• A)use loopholes and tax exemptions to reduce their share of federal income taxes to less than 20 percent.
• B)pay almost 69 percent of federal income taxes.
• C)pay about 92 percent of federal income taxes but only about 20 percent of Social Security and Medicare payroll taxes.
• D)pay more in excise and other taxes than they pay in Social Security and Medicare payroll taxes.

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Definitions:

Marginal Product

The additional output produced as a result of adding one more unit of a particular input, keeping other inputs constant.

Average Product

The ratio of total product to the amount of input used, determined by dividing the overall output by the input quantity.

Average Product

The average amount of output produced per unit of a specific input, like labor or capital, over a certain period.