The Amount of Additional Earnings That Must Be Paid Explicitly

question 80

Multiple Choice

The amount of additional earnings that must be paid explicitly in taxes or implicitly in the form of a reduction in income supplements is known as the

• A) marginal income tax rate.
• B) implicit marginal tax rate.
• C) explicit benefit-reduction rate.
• D) supplemental income tax rate.

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Definitions:

Equilibrium Quantity

The amount of goods or services that are bought and sold at the equilibrium price, where market demand meets market supply.

Consumer Surplus

The discrepancy between the total sum consumers are prepared and able to spend on a good or service and what they ultimately pay.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded.

Equilibrium Quantity

The quantity of goods or services supplied that equals the quantity demanded at the market equilibrium price.