This Year Bill Earned $3,000 More Than Last Year

question 7

Multiple Choice

This year Bill earned $3,000 more than last year. As a result, he received $2,500 less in government transfers. Therefore, Bill's implicit marginal tax rate is about

• A) 16 percent
• B) 25 percent
• C) 66 percent
• D) 83 percent

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Definitions:

U.S. Citizens

Individuals who either were born in the United States or have gone through the naturalization process to legally attain citizenship status in the United States.

National Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments and private investors.

Future Generations

The forthcoming populations that will live on Earth in the future, whose interests are considered in sustainable development and environmental conservation.

Debt Service

The cash required to cover the repayment of interest and principal on a debt for a particular period.