Use the Following to Answer Questions

question 105

Multiple Choice

Use the following to answer questions
Figure: U.S.Marginal and Average Tax Rates
-(Figure: U.S.Marginal and Average Tax Rates) According to the tax rates shown in the figure,an individual who earns $150,000 a year has an approximate average tax rate of:

• A) 28%.
• B) 25%.
• C) 20%.
• D) 15%.

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Definitions:

Productivity Gains

Increases in the amount of output produced per unit of input, reflecting improvements in efficiency, technology, or processes.

Transferability

The ability of an asset to be transferred or converted easily from one individual to another without affecting its value.

Human Capital

A collection of proficiencies, knowledge, or invisible assets owned by individuals that can be leveraged to bring about economic prosperity for themselves, their work environments, or their community.

Compensating Differential

A difference in wages that compensates workers for undesirable aspects of a job, such as hazardous working conditions or undesirable hours.