The Following Table Provides Data for an Economy in a Certain

question 144

Multiple Choice

The following table provides data for an economy in a certain year. Given the data in the table, compute the value of GDP.

• A) 2,400
• B) 2,500
• C) 2,600
• D) 2,700

---

Definitions:

Progressive Income Tax

A taxing mechanism in which the tax rate increases as the taxable amount or income increases, placing a higher burden on those who earn more.

Average Tax Rate

The ratio of the total amount of taxes paid to the taxpayer's total income, representing the percentage of income paid in taxes.

Marginal Tax Rate

The tax rate applied to the last dollar of income, representing the percentage of tax paid on any additional dollar of income.

Taxable Income

The portion of an individual's or entity's income used to calculate how much tax they owe to the government, after deductions and exemptions.