Using the Table Below, Assume a Single Person Has a Taxable

question 4

Short Answer

Using the Table below, assume a single person has a taxable income of $40,000.
$$\begin{array}{l}\underline{\text { Taxable Income }} \quad\underline{ \text { Tax Rate}}\\\begin{array} { l l } 0 - \$ 7,300 & 10 \% \\\$ 7,300 - \$ 29,700 & 15 \% \\\$ 29,700 - \$ 40,000 & 25 \%\end{array}\end{array}$$ (a) How much tax will be owed? (You will need to refer to the Table plus make your own calculations).
(b) What is the person's average tax rate?
(c) What is the person's marginal tax rate?

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Definitions:

Factor 2

A component or element that contributes to a particular result or situation.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Marginal Product

Marginal product is the additional output resulting from the use of one more unit of a variable input, holding other inputs constant.

Fertilizer

Substances used to supply essential nutrients to plants, aiming to enhance growth, yields, and quality of agricultural produce.