If Lex's Income Increases from $30,000 to $40,000 and His

question 296

Multiple Choice

If Lex's income increases from $30,000 to $40,000 and his tax liability increases from $6,000 to $10,000, which of the following is true?

• A) His marginal tax rate is 20 percent in this range.
• B) His average tax rate is 40 percent at his new income level of $40,000.
• C) He faces a regressive tax in this income range.
• D) He faces a progressive tax in this income range.

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Definitions:

Testosterone Level

The concentration of testosterone, a steroid hormone responsible for the development of male secondary sexual characteristics, in the bloodstream.

Neurotransmitters

Chemicals in the nervous system that transmit signals across a synapse from one neuron to another, playing a key role in managing bodily and mental functions.

Personality

Personality encompasses the set of emotional, attitudinal, and behavioral response patterns of an individual.

2D:4D Ratio

The length of someone’s index finger divided by the length of their ring (third) finger; a low ratio is linked to a high testosterone level.