If an Individual Is Taxed at a 17 Percent Rate

question 19

Multiple Choice

If an individual is taxed at a 17 percent rate for each extra dollar earned,the reference is to the

• A)Marginal tax rate.
• B)Nominal tax rate.
• C)Average tax rate.
• D)Effective tax rate.

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Definitions:

Discouraged Workers

Individuals who are not actively looking for work because they believe no jobs are available for them or there are no positions for which they qualify.

Underemployed Workers

Individuals working less than they would like to or in positions that do not utilize their skills or education level.

Labor Force

The total number of people employed or seeking employment in a country or region.

Civilian Labor Force

The sum of all civilians classified as employed or unemployed, indicating those available for work.