This Year, Bob Earned a Total of $9,000

question 119

Multiple Choice

This year, Bob earned a total of $9,000. As a result, he received $9,000 less in government transfers. Therefore, his implicit marginal tax rate is

• A) zero.
• B) 25 percent.
• C) 50 percent.
• D) 100 percent.

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Definitions:

Rebate

A partial refund to someone who has paid too much money for tax, rent, or utility.

Auction Without Reserve

A type of auction in which the item for sale will be sold regardless of the price since there is no minimum bidding threshold set.

Diamond Ring

A piece of jewelry featuring a diamond set into a ring, often used as a symbol of commitment or status.

Bilateral Contract

A mutual agreement between two parties where each promises to perform an act in exchange for the other's act.